Metso Paper Gets OK to Buy Shanghai-Chenming Paper Machinery Company
Sept. 1, 2006 - Metso Paper said that it has received regulatory approval from Chinese authorities for the acquisition of Shanghai-Chenming Paper Machinery Co. Ltd., a manufacturer of paper and board machines in China.
Metso previously announced its intention to acquire Shanghai-Chenming in February 2006.
According to Metso, the debt-free purchase price and the investments related to the development of the unit total about EUR 35 million. The company was previously owned by Shandong Chenming and Shanghai Heavy Machinery.
The company will now operate under the name of Metso Paper Technology (Shanghai) Co. Ltd.
The business includes a workshop, a foundry and a design department, and is located in the Shanghai area in Jiading. It employs about 550 people, Metso said.
The facility will primarily focus on manufacturing paper and board machine sections for Metso Paper's delivery projects in China, Metso added.
Metso Paper also has a joint venture company, Valmet-Xian Machinery Co. Ltd. in China. Valmet-Xian employs approximately 1,110 people and focuses on small and medium size paper and board machines. Metso owns 48.3 percent of the joint venture.
SOURCE: Metso Inc.