Metso to Buy Paper Machine Manufacturer in China
Feb. 13, 2006 (Press Release) - Metso Paper has made an agreement to buy the entire share capital of Shanghai-Chenming Paper Machinery Co. Ltd, a Chinese manufacturer of paper machines. The company is currently owned by Shandong Chenming and Shanghai Heavy Machinery, and it is located in the Shanghai area in Jiading.
The finalization of the transaction is subject to approval by the Chinese authorities. The transaction value will be published after the finalization.
The Shanghai-Chenming Paper Machinery's foundry and machine shop manufacture primarily narrow paper and board machines for the Chinese market as well as dry-end components. The company employs 630 people, and its net sales in 2004 amounted to about Euro 13 million ($15.6 million).
"When finalized, the acquisition will enable us to better serve not only our Chinese customers but also the pulp and paper industry in Asia. The Shanghai area is also excellent in terms of developing the purchasing function," noted president, Metso Paper, Risto Hautamäki.