Metso sells foundry operations in Sweden to Åkers AB

Published Dec 20, 2002 14.12.00 +2 GMT

Metso will sell its foundry operation in Karlstad, Sweden to a newly established company, which will be formed by Åkers AB and Metso Paper Karlstad AB. Åkers AB will initially own 51 % of the stock of shares and will have a future option to acquire the rest of the shares. The Letter of Intent was signed on December 20, 2002. The parties have agreed not to disclose the price of the planned transaction.

The Metso foundry in Karlstad is specialized in large, hand-moulded cast pieces like tissue paper machine Yankee cylinders, components for wind turbines, and diesel engine blocks. The total capacity of the foundry is 9,000 tons per year. The foundry's 104 employees will transfer to the new company.

The new company will focus on new products and market areas such as the wind turbine industry and the diesel engine industry. Today, approximately only 20 % of the Karlstad foundry’s capacity is utilized by Metso Paper. The new company will continue to supply Metso Paper with cast key components.

The Swedish-owned Åkers Group is the world´s leading producer of rolls for the iron and steel industry. The group has an annual production capacity of 75,000 tons of cast rolls and 15,000 tons of forged rolls. The Åkers Group's net sales is about EUR 250 million and its personnel numbers about 1 600.

More information: Per Eiritz, President, Metso Paper Karlstad AB, Sweden tel. +46 54 17 14 94 Mikko Siiteri, Sr. VP, Strategic Development, Metso Paper tel. +358 400 706 729