Frantschach Pulp & Paper Czech to outsource maintenance services to Scandinavian Mill Service

Published Dec 18, 2003 15.00.00 +2 GMT

Frantschach Pulp & Paper Czech a.s. has signed on 17 December 2003 an agreement with Scandinavian Mill Service Czech s.r.o. to outsource the mechanical maintenance at Steti mill in Czech Republic. This outsourcing agreement is an important step for Scandinavian Mill Service-group and it strengthens the company’s position in pulp and paper industry maintenance markets in Central Europe.

The scope for Scandinavian Mill Service Czech s.r.o. in this agreement includes mechanical maintenance and related purchases. The company will employ 80 people of whom 76 come from Frantschach. When outsourcing these operations, Frantschach´s aim is to increase maintenance efficiency and expertise and to create more contacts with OEMs.

Scandinavian Mill Service Czech s.r.o. is a part of Scandinavian Mill Service-group, which is owned by Metso Paper, Inc. Scandinavian Mill Service-group´s line of business is to improve and to develop the pulp and paper industry maintenance mainly through outsourcing. Currently the company has operations in Sweden, Norway and Finland. Quite a few pulp and paper mills have outsourced their maintenance operations or are in the process to do so. Mills are then aiming to concentrate on their core businesses and this gives new opportunities for Metso Paper´s Service operations.

Frantschach Pulp and Paper Czech a.s. (FPPC), in Steti, Czech Republic, is a member of the Frantschach Group which is included in Mondi Europe. FPPC produces annually 130,000 tons of market bleached pulp, 200,000 tons of packaging paper and 90,000 tons of liner. FPPC has a turnover of EUR 225 million and has 680 employees.

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 2002, the net sales of Metso Corporation were EUR 4.7 billion and the personnel totaled approximately 28,500. Metso Corporation is listed on the Helsinki and New York Stock Exchanges.

More information: Miroslav Juva, Technical Director, Frantschach Pulp & Paper Czech a.s. tel. + 420 426 802 017, GSM +420 602 338 372 Jukka Tiitinen, President, Service Business Line, Metso Paper, Inc. tel. +358 40 740 6178 Ari Mankki, Vice President, Development of Maintenance Center Network, Metso Paper, Inc. tel. +358 40 582 1408