Metso to sell automation business to former paper subsidiary

By Chris Sleight16 January 2015

Metso CEO Matti Kähkönen

Metso CEO Matti Kähkönen

Metso has agreed to sell its Process Automation Systems business to Valmet for € 340 million. Valmet makes equipment for the pulp and paper industries, and was part of Metso until 2013 when the two businesses demerged.

Metso said the divestment was is in line with the new strategy it announced in July last year to focus on products and services for the mining, aggregates, and oil & gas industries. When the strategy was announced, Metso also said it look at the future of its Process Automation Systems business.

The Process Automation Systems serves the pulp, paper and power industries, with a covering automation and quality control systems, analysers and measurements and related services. It has 1,600 employees in some 80 locations around the world and had revenues of € 300 million in 2013.

Matti Kähkönen, president and CEO of Metso said, "We are very pleased to announce this transaction. It is a logical step and an important milestone in implementing our new strategy. We are happy that we could achieve this strategic milestone in a timely manner, thereby allowing Metso to fully focus on growing its core businesses and also minimising the period of uncertainty for the PAS business and people."

The transaction is expected to be closed by April 1 and, is subject to approval by competition authorities. Metso expects to book a capital gain on the deal.

Delivered directly to your inbox, World Construction Week Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Longer Reads
5 ways to make remote working work
Keith Ali, MD at Creative ITC, explains how to overcome 5 common challenges when deploying remote working solutions to ensure AEC organisations realise business benefits from digital transformation.
COMMENT: Are we at the beginning of a golden decade in German construction?
Peter Gerstmann, chairman of the board of management of the Zeppelin Group discusses growing opportunities for the German construction sector
Can hydrogen engines turn construction green?
Hydrogen combustion engines move to centre stage as construction aims for zero emissions
Andy Brown Editor, International Construction Tel: +44 (0) 1892 786 224 E-mail:
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: