Metso Corp. Stock Exchange Release February 4, 2004 at 1.30 p.m. 1(1)
METSO REVIEWS DEVELOPMENT ALTERNATIVES FOR COMPACTION AND PAVING
EQUIPMENT BUSINESS DYNAPAC
In line with Metso Corporation's strategic direction and in order to
strengthen Corporation's balance sheet Metso's Board of Directors has
decided to initiate a review on the development alternatives for
Dynapac, including a potential divestment. Construction and paving
equipment manufacturer Dynapac operates as an independent business
with relatively limited synergies with the other businesses within
"Dynapac is an excellent and profitable business, which has
strengthened its market share in 2003 in new, growing markets such as
China. However, Metso Minerals is not able to fully take advantage of
Dynapac's potential", says President of Metso Minerals Bertel
Dynapac, which forms the Compaction and Paving business line of Metso
Minerals, is a leading global manufacturer of compaction and paving
equipment. Dynapac designs, manufactures and sells under its strong
and established brand name rollers, pavers, planers and concrete and
light compaction equipment and services. In 2003 the net sales of
Dynapac totalled 322 million euros, which represents less than a fifth
of Metso Minerals' net sales.
Dynapac has seven manufacturing plants, located in Sweden, Germany,
France, Brazil and China. In addition, the company has sales and
marketing outlets in approximately 50 countries. At the end of 2003
Dynapac employed some 1,800 people. Dynapac became part of Metso
Corporation in 2001 as a result of the integration of Swedish Svedala
and Metso's rock and minerals processing business area Metso Minerals.
Dynapac was established in 1934 in Karlskrona, Sweden.
A potential divestiture would have a significant positive effect on
Metso Corporation's gearing.
Metso Corporation is a global supplier of process industry machinery
and systems, as well as know-how and aftermarket services. The
corporation's core businesses are fiber and paper technology (Metso
Paper), rock and mineral processing (Metso Minerals) and automation
and control technology (Metso Automation). In 2003, the net sales of
Metso Corporation were EUR 4.3 billion and the personnel totaled
approximately 27,400. Metso Corporation is listed on the Helsinki and
New York Stock Exchanges.
For additional information, please contact:
Olli Vaartimo, President and CEO, Metso Corporation, tel. +358 20 484
Bertel Langenskiöld, President, Metso Minerals, tel. +358 20 484 3200
Eeva Mäkelä, Manager, Investor Relations, Metso Corporation, tel. +358
20 484 3253
Olli Vaartimo Helena Aatinen
President and CEO Senior Vice President
New York Stock Exchange
Metso is a world-leading industrial company offering equipment and services for the sustainable processing and flow of natural resources in the mining, aggregates, recycling and process industries. With our unique knowledge and innovative solutions, we help our customers improve their operational efficiency, reduce risks and increase profitability. Metso employs over 14,000 people in more than 50 countries.