Metso Paper concludes an agreement to outsource its Karhula, Finland production

Published Dec 29, 2004 14.00.00 +2 GMT

As a part of Metso Paper's program to renew its business concept and to streamline its cost structure, which was launched in June 2004, Metso Paper has reviewed alternatives for its Karhula, Finland, production unit.

Based on this, Metso Paper has today concluded an agreement to sell its production operations in Karhula to Mesera Works Oy. According to the agreement, 105 workers will transfer as existing employees to Mesera Works on January 1, 2005. Additionally, a letter of intent concerning the sale of the land area and the buildings in Karhula to a company called Kiinteistö Oy Karhulan Levyhalli has been concluded today. The parties have agreed not to disclose the transaction prices. The transactions will not have a material effect on Metso's 2004 fourth quarter results.

In addition, Metso Paper has today concluded an agreement with Etteplan Oyj, according to which six Karhula employees involved in the mechanical development of headboxes will transfer to Etteplan as existing employees.

Metso Paper will continue in Karhula with operations relating to paper machine renewals and process improvements.

Mesera Yhtiöt Oy is a Finnish contract manufacturer for metal industry machine and equipment suppliers. Its net sales are approximately EUR 40 million, and it employs approximately 330 people.

Etteplan Corporation is one of the leading Finnish companies in high-quality industrial design and expert services. Its net sales in 2003 were EUR 50.7 million, and it employed approximately 1,000 people.

For further information, please contact: Jorma Lusma, Senior Vice President, Production Operations Development, Metso Paper, tel. +358 204 84 27001 Eeva Mäkelä, Vice President, Investor Relations, Metso Corporation, tel. +358 204 84 3253