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Metso Corporation (NYSE:MX) (Metso Corporation Press Release on June 26, 2008 at 1.00 p.m.)
Porsche AG announced today that they will not renew the current assembly contract with Valmet Automotive. Porsche's announcement is not estimated to have any short-term impact on Valmet Automotive's operations as the Uusikaupunki plant will continue to manufacture Porsche Boxsters and Caymans until 2012 as agreed in the 2004 contract. Valmet Automotive has been manufacturing Porsche Boxsters since 1997 and Porsche Caymans since 2005.
Ilpo Korhonen, President of Valmet Automotive, says that the plant has two to three years to sign a new manufacturing contract and thus to safeguard production without major breaks: "We can offer world-class production quality. Recently we have been complementing our manufacturing capabilities with consistent development of our own in-house manufacturing engineering, product development and project management services. This will improve our possibilities to win new contracts in the ongoing negotiations with other car manufacturers. Unfortunately, this time our offer did not meet Porsche's future demands."
Holger P. Härter, Deputy Chairman of Porsche SE, and as Chief Financial Officer responsible for the allocation of commissioned production, comments: "Over the last eleven years, Valmet Automotive has built more than 200,000 sports cars of outstanding quality for us. Our decision not to continue the successful cooperation is in no way a vote against Valmet. Rather, it was the high development capacity and competence of our future partner that tipped the balance."
In 2007, the net sales of Valmet Automotive were EUR 85 million. The number of personnel is about 800. Valmet Automotive recently completed personnel negotiations resulting in fixed-time lay-offs and training of the personnel. The temporary reduction of production in the autumn mainly results from the seasonal, decreased market demand in roadster car segment.
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 www.valmet-automotive.com
For further information, please contact: Ilpo Korhonen, President, Valmet Automotive, tel. +358 204 84 8000 Kati Renvall, Vice President, Corporate Communications, Metso Corporation, tel. +358 204 84 3121
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