Distribution of company announcements to the professional platforms, finance portals and syndication of important corporate news to a wide variety of news aggregators and financial news systems.
Metso Corporation (NYSE:MX) Metso Corporation Press release on June 23, 2008 at 9:45 a.m
Metso has signed an agreement with GE Energy to acquire GE's Lachine Main Plant, a heavy fabrication and machining facility located near Montreal, province of Quebec, Canada. The transaction is expected to close in mid-August. The parties have agreed not to disclose the financial terms. The acquired assets will be integrated into Metso Minerals' Mining business line.
The acquisition increases Metso's supply capacity for large mining equipment. The heavy manufacturing space of approximately 25,000 m2 features major machine tools and lifting power and is serviced by rail lines. The unit has recently been dedicated to the production of hydraulic turbines and power generation equipment. With excellent land and sea connections, the new facility can efficiently service Metso's customers worldwide. The facility can start the supply of the complete range of Metso's mining process machinery immediately after the closing. Approximately 200 skilled GE Energy employees are expected to transfer to Metso.
"Listening to our mining customers, we estimate that the current boom is likely to continue for years. Therefore investments in the supply chain are extremely important. The acquired capacity will allow us to provide our mining customers with high quality products on attractive delivery times. It clearly supports Metso's growth strategy and our commitment to respond to our customers' needs," says Matti Kähkönen, President of Metso Minerals.
The availability of resources such as capital equipment and core components is an increasingly critical factor in the start-up of new mining projects. Following Metso Park investment in India, which was announced in April, the Lachine acquisition further increases Metso's capacity to serve its customers.
Metso is a global engineering and technology corporation with 2007 net sales of over EUR 6 billion. Its over 27,000 employees in approximately 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries. www.metso.com
For further information for press, please contact:
Tuula Puhakka, Senior Vice President, Business Development and Marketing, Metso Minerals, tel. +358 20 484 4504 Andrew Benko, President, Mining business line, Metso Minerals, tel. +1 717 849 7426
It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding expectations for general economic development and the market situation, expectations for customer industry profitability and investment willingness, expectations for company growth, development and profitability and the realization of synergy benefits and cost savings, and statements preceded by "expects", "estimates", "forecasts" or similar expressions, are forward-looking statements. These statements are based on current decisions and plans and currently known factors. They involve risks and uncertainties which may cause the actual results to materially differ from the results currently expected by the company.
Such factors include, but are not limited to: (1) general economic conditions, including fluctuations in exchange rates and interest levels which influence the operating environment and profitability of customers and thereby the orders received by the company and their margins (2) the competitive situation, especially significant technological solutions developed by competitors (3) the company's own operating conditions, such as the success of production, product development and project management and their continuous development and improvement (4) the success of pending and future acquisitions and restructuring.
