Metso Corp. Seeks to Accelerate Growth with Restructuring

Metso’s strategic focus in 2008-2012 continues to be on sustainable profitable growth. To accelerate the strategy execution, Metso’s businesses will be reorganized starting the first of next year. The company is targeting energy and environment technology as a new platform for growth. Metso is also upgrading its financial targets and initiating a study with Goldman Sachs as adviser to assess further value-enhancing opportunities, including structural options.

"Metso’s profitable growth strategy was launched in August 2005. Our progress has been strong, and we are reaching the financial targets set in October 2006 one year earlier than we estimated at the time," says Jorma Eloranta, president and CEO of Metso. "Now it is time to accelerate the strategy execution by introducing a new operating structure and more ambitious financial targets."

As of January 1, 2009, Metso’s businesses will be reorganized into three reporting segments:

Mining and Construction Technology, consisting of the current Mining and Construction businesses. The reporting segment will be headed by Matti Kähkönen, currently president of Metso Minerals.

Energy and Environment Technology, consisting of the current Metso Automation and the Power and Recycling businesses, with Metso Automation’s current President Pasi Laine on lead.

Paper and Fiber Technology, consisting of the current Paper and Board, Tissue and Fiber businesses, will be headed by Bertel Langenskiöld, currently president of Metso Paper.

In 2008-2012, Metso’s mining and construction businesses will continue to focus on fully exploiting the strong market demand. In the paper and fiber businesses the focus will be on enhancing Metso’s presence close to its growing customer base in emerging markets and on a strong transformation to services business. The energy and environment businesses offer interesting new growth opportunities based on Metso’s current know-how and technologies in the power, recycling and automation businesses, complemented by value-enhancing acquisitions.

"Simultaneously with enhancing our focus on the energy and environment segment, Automation and Power businesses will naturally continue to work in close cooperation with Paper and Fiber segment to develop our product and service offering towards the pulp and paper industry," Eloranta notes.