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=== Pulp, Paper and Power === |
=== Pulp, Paper and Power === |
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Metso Pulp, Paper and Power is one of world’s leading manufacturers of forest industry machines and equipment. It was formerly known as Valmet Paper Machinery. Through this segment, Metso offers processes, machinery, equipment, services, paper, machine clothing and filter fabrics for the pulp, paper and power generation industries. The offering covers the entire process life cycle including new production lines, rebuilds and services. |
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The segment consists of four business lines: Paper, Fiber, Power, Services. It is a global supplier of pulpmaking, papermaking, boardmaking and tissuemaking lines, covering all the processes from [[Wood pulp|pulp making]] to the wrapping of finished rolls. Metso has supplied over 1,500 paper machines and equipment for 800 pulping lines to customers worldwide. Approximately one third of the global paper production is performed on production systems supplied by Metso Paper and its predecessors (e.g. [[Valmet]], [[Ahlström]], [[Beloit Corporation|Beloit]], [[Wärtsilä]], [[Karlstads Mekaniska Werkstad|KMW]], [[Kamyr]], Sunds Defibrator).{{Citation needed|date=July 2009}} |
The segment consists of four business lines: Paper, Fiber, Power, Services. It is a global supplier of pulpmaking, papermaking, boardmaking and tissuemaking lines, covering all the processes from [[Wood pulp|pulp making]] to the wrapping of finished rolls. Metso has supplied over 1,500 paper machines and equipment for 800 pulping lines to customers worldwide. Approximately one third of the global paper production is performed on production systems supplied by Metso Paper and its predecessors (e.g. [[Valmet]], [[Ahlström]], [[Beloit Corporation|Beloit]], [[Wärtsilä]], [[Karlstads Mekaniska Werkstad|KMW]], [[Kamyr]], Sunds Defibrator).{{Citation needed|date=July 2009}} |
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In the first half of 2009, Metso laid off over 700 employees and shut down several small units in e.g. [[Tampere]], [[Turku]], [[Oulu]] and [[Hollola]]. The operations of the shut-down units were integrated with the [[Järvenpää]] and [[Jyväskylä]] units. Metso’s strategy for the 2000's was to manufacture wide, high-speed paper machines and discontinue its traditional paper machine concepts. |
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⚫ | In 2011 Metso's Pulp, Paper and Power segment's net sales were EUR 2,703 million. In 2011, it had a personnel of 12,528. Europe, South and Central America, Asia and North America were all large market areas for the segment.<ref name="PPP">{{cite web |url=http://www.metso.com/corporation/about_eng.nsf/WebWID/WTB-090527-2256F-EE62A?OpenDocument |title=About Metso's Pulp, Paper, Power segment on Metso's website |accessdate=2012-04-04 |publisher=Metso}}</ref> |
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⚫ | In 2011 Metso's Pulp, Paper and Power segment's net sales were EUR 2,703 million and the biggest of the business lines was Services with net sales of EUR 916 million followed by Paper (EUR 795 million), Power (EUR 715 million) and Fiber (EUR 397 million). In 2011, it had a personnel of 12,528. Europe, South and Central America, Asia and North America were all large market areas for the segment.<ref name="PPP">{{cite web |url=http://www.metso.com/corporation/about_eng.nsf/WebWID/WTB-090527-2256F-EE62A?OpenDocument |title=About Metso's Pulp, Paper, Power segment on Metso's website |accessdate=2012-04-04 |publisher=Metso}}</ref> |
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=== Mining and Construction === |
=== Mining and Construction === |
Revision as of 11:03, 19 October 2012
Company type | Public company |
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Nasdaq Helsinki: MEO1V OTCQX: MXCYY | |
Industry | Industrial machinery |
Predecessor | Valmet, Rauma Oy |
Founded | 1999 |
Headquarters | , |
Key people | Jukka Viinanen (Chairman), Matti Kähkönen (President and CEO) |
Products | Machinery and services for the process industries, including mining, construction, pulp and paper, energy and oil and gas |
Revenue | €6.646 billion (2011)[1] |
€628 million (2011)[1] | |
€358 million (2011)[1] | |
Total assets | €6.618 billion (end 2011)[1] |
Total equity | €2.136 billion (end 2011)[1] |
Number of employees | 30,324 (end 2011)[1] |
Website | www.metso.com |
Metso supplies technology and services to customers in the process industries, including mining, construction, pulp and paper, power, and oil and gas. Metso Corporation was created in 1999 through the merger of Valmet and Rauma and is headquartered in Helsinki, Finland. Metso consists of three reporting segments: Mining and Construction, Automation and Pulp, Paper and Power.
History
Even though Metso Group is still relatively young its roots date back to the 1750s in Helsinki, where a small shipyard in Suomenlinna operated in the 1900s. In the 1900s the shipyard was transferred as part of Valmet to the ownership of the State of Finland. Tamfelt which was acquired in 2009 was also founded in the 1700s.
1990's
Metso was created on 1 July 1999 through the merger of Valmet, a paper and board machine supplier, and Rauma, which focused on fiber technology, rock crushing and flow control solutions.
In 1998 Rauma’s businesses included:
- Timberjack forest machines
- Sunds Defibrator fiber technology equipment
- Nordberg rock crushers
- Neles Controls valve-control systems
The new company had overlapping operations and to some extent the same customer base too. The purpose of the merger was the will to grow particularly in process technology. For a bigger company it seemed to be easier to survive better in international markets. The company’s scope of business became more diversified than before and there were critics of the merger saying that easier growth would have been achieved if the two companies would have each acquired a competitor in their own core business sector. Matti Sundberg who was the President and CEO in Valmet and then the CEO of Metso has later said that he had wanted to implement the merger in different way. He would have liked to emphasize more the strengthening of Valmet’s core business, the paper machine side, as the goal of the merger. Heikki Hakala who was the President and CEO of Rauma became the new President of Metso. The company’s beginning was sluggish and the first year’s financial result was quite modest. The collaboration and exercising of power between Hakala and Sundberg did not work. Hakala, who was slated as Sundberg’s “right hand,” reported to the Supervisory Board chaired by Pertti Voutilainen.
The new company had offices in 50 countries and 32,000 employees after a personnel reduction of 2,000 people, and it operated in four sectors:
- Paper machines
- Forest machines (divested in 2001)
- Fiber technology
- Rock crushing plants
The name for the new company was sought in an employee contest. There were 3 suggestions for the name Metso among the total 6500 suggestions. All the three who had suggested the name Metso received a monetary prize. Metso is the Finnish word for Wood Grouse, also known as The Western Capercaillie (Tetrao urogallus), Heather Cock or Capercaillie. Wood Grouse is found across Europe lives e.g. in Finnish pine forests. Metso’s logo mimics the shape of the wings of a Wood Grouse.
2000´s
Sundberg and Hakala did not stay that long in Metso’s management. Tor Bergman became the new President and CEO in 2001. Metso’s net sales were EUR 4.7 billion, and it had 28,500 employees in 2001.
One of Bergman’s first efforts in Metso was to highlight its values and ethical principles, putting special emphasis on shareholder value. A socially acceptable company is more efficient and thus brings more value to its owners. According to Bergman’s management philosophy Metso’s operational core was technology leadership along with creating and developing competence clusters.
The new Metso Group was divided into three business areas:
- Fiber and Paper Technology
- Automation and Control Technology
- Machinery
The merger had given direction to the company’s future focus on
- Pulp, paper and energy production technologies
- Equipment needed for the construction, mining and recycling industries
- Automation and control systems for the process industry
This formed Metso’s three main business areas: Metso Paper, Metso Minerals and Metso Automation.
The aim of the plethora of business acquisitions made in the 2000's was to expand the product and services portfolio of Metso Paper and Metso Automation. Business operations outside the core businesses were divested. For example, in 2000, Metso acquired the roll cover business and paper machine servicing operations, including paper machine technologies, from the American paper machine manufacturer Beloit_(corporation), and the American John_Deere aka Deere & Company acquired the forest machine manufacturer Timberjack from Metso. In 2001, Metso acquired the Swedish Svedala Industri AB, a manufacturer of rock and minerals processing equipment.
In 2002, Metso announced that it would not achieve its profit targets for two years, and a loss in excess of EUR 300 million was recorded for July-September. The reason for difficulties was Svedala. In 2003, a loss of over EUR 200 million was recorded and in September 2003, President and CEO Bergman was forced to resign because of the company’s poor results. Jorma Eloranta was selected as his successor and he started in March 2004. Eloranta started by distancing the goals and the reality from one another within the Metso organization, where the implementation of the plans and the strategy had begun. Managers were given clearly defined goals, responsibilities and timetables; the company’s structure was strongly streamlined. These measures cut annual costs by EUR 150 million. From 2004-2007, Metso’s net sales increased from EUR 3.6 billion to EUR 6.3 billion, and the profit margin rose from 5.5 percent to 9.3 percent.
During Eloranta’s tenure, Metso increased its net sales and improved its financial performance for 19 consecutive quarters (2004-2008). By 2008, Metso had grown to become Finland’s ninth largest company, surpassing other engineering companies like Kone, Wärtsilä and Cargotec.
Metso’s business functions had divided into three sectors (Metso Paper, Metso Minerals and Metso Automation) with over 28,000 employees and net sales of EUR 6.4 billion. In fact, at that point, it was Metso’s best year ever in terms of operating profit and net sales, but the rapidly weakened market situation in the second half of the year forced Metso to initiate sizable measures to adjust its operations.
2010´s
In August 2010, Matti Kähkönen, Master of Science in Technology, was appointed the new President and CEO. He previously headed Metso’s Mining and Construction division. In September 2012, Metso announced the need for a personnel reduction of more than 600 Finnish employees in several of its units serving the paper industry and paper production. The reason for the reductions is the weakening of paper business unit’s competitiveness and profitability: competition has increased, demand for paper machine and foundry products has weakened. Customers also want cheaper solutions than before.
Organization
Metso is a technology and services supplier. Today the company’s operations are divided into three business areas, i.e. reporting segments:
- Metso Pulp, Paper and Power, consisting of the Paper, Fiber, Power and Services business lines
- Mining and Construction, consisting of the Minerals Processing Solutions, Crushing and Screening Equipment, and Services business lines
- Metso Automation, consisting of the Process Automation Systems, Flow Control, and Services business lines
Metso’s subsidiary outside its business areas is the vehicle manufacturer Valmet Automotive.
Corporate governance
Metso’s President and CEO as well as Chairman of the Executive Team is Matti Kähkönen.
Metso’s Board of Directors
Metso’s Board includes the following members (September 2012):
- Jukka Viinanen (Chairman since 2009, Board member since 2008)
- Mikael von Frenckell (Vice Chairman since 2012, Board member since 2010)
- Christer Gardell (2006-)
- Ozey K. Horton, Jr. (2011-)
- Erkki Pehu-Lehtonen (2010-)
- Pia Rudengren (2009-)
- Eeva Sipilä (2012-)
- Personnel representative on Metso’s Board: Eija Lahti-Jäntti
Metso Executive Team
The Executive Team includes the following members (September 2012):
- Matti Kähkönen, President and CEO
- Harri Nikunen, CFO
- Andrew Benko, President, Mining and Construction
- Perttu Louhiluoto, President, Automation
- Pasi Laine, President, Pulp, Paper and Power, Metso’s Executive Vice President and Deputy to the CEO
- Merja Kamppari, Senior Vice President, Human Resources
- Kalle Reponen, Senior Vice President, Strategy and M&A
Pulp, Paper and Power
Metso Pulp, Paper and Power is one of world’s leading manufacturers of forest industry machines and equipment. It was formerly known as Valmet Paper Machinery. Through this segment, Metso offers processes, machinery, equipment, services, paper, machine clothing and filter fabrics for the pulp, paper and power generation industries. The offering covers the entire process life cycle including new production lines, rebuilds and services.
The segment consists of four business lines: Paper, Fiber, Power, Services. It is a global supplier of pulpmaking, papermaking, boardmaking and tissuemaking lines, covering all the processes from pulp making to the wrapping of finished rolls. Metso has supplied over 1,500 paper machines and equipment for 800 pulping lines to customers worldwide. Approximately one third of the global paper production is performed on production systems supplied by Metso Paper and its predecessors (e.g. Valmet, Ahlström, Beloit, Wärtsilä, KMW, Kamyr, Sunds Defibrator).[citation needed]
In the first half of 2009, Metso laid off over 700 employees and shut down several small units in e.g. Tampere, Turku, Oulu and Hollola. The operations of the shut-down units were integrated with the Järvenpää and Jyväskylä units. Metso’s strategy for the 2000's was to manufacture wide, high-speed paper machines and discontinue its traditional paper machine concepts.
In 2011 Metso's Pulp, Paper and Power segment's net sales were EUR 2,703 million and the biggest of the business lines was Services with net sales of EUR 916 million followed by Paper (EUR 795 million), Power (EUR 715 million) and Fiber (EUR 397 million). In 2011, it had a personnel of 12,528. Europe, South and Central America, Asia and North America were all large market areas for the segment.[2]
Mining and Construction
Metso's Mining and Construction segment consists of three business lines: Minerals processing solutions, Crushing and screening equipment and Services.
Together, these businesses supply rock and minerals processing systems to customers in mining, aggregates production, quarrying and construction. Metso’s Process Technology Center in Colorado Springs, Colorado, USA, is developing virtual machines based on sophisticated multi-physics models. The use of this technology is rare within the mining industry, making Metso the leader in simulating these complex problems.[3]
Automation
Metso's Automation segment is a global supplier of machine and process automation for the pulp and paper industry, rock and minerals processing and the power and process industries. It consists of three business lines: Automation systems, Flow control and Services.
Metso has the industry widest automation offering to pulp and paper industry covering applications and services ranging from specialty analyzers, automated laboratories, control and on/off valves to system for process control & information management, machine control, drive control and quality control with profilers.
Other businesses and separate entities
Materials Technology
Metso Materials Technology supplies and develops metallic materials for different industries.[4] Metso Materials Technology has also contributed to both the CERN LHC[5] and ITER[6] projects.
Valmet Automotive
Valmet Automotive provides automotive engineering, vehicle manufacturing, convertible roof systems and related business services. It has expertise in premium cars, convertibles and electric vehicles. In 2012, the company employed 1,700 people in Finland, Germany, Poland, Sweden, China and the USA.
Recycling
Metso's recycling business offers metal and waste recycling equipment and services globally. On September 1, 2011, Metso announced that the Recycling business would be managed as a separate entity while Metso reviews other strategic alternatives for it.[7]
References
- ^ a b c d e f "Annual Report 2011". Metso. Retrieved 4 April 2012.
- ^ "About Metso's Pulp, Paper, Power segment on Metso's website". Metso. Retrieved 2012-04-04.
- ^ "High-tech modeling contributes to more sustainable mining machines". Retrieved 2010-12-28.
- ^ "Metso Materials Technology Website". Metso. Retrieved 2009-07-08.
- ^ "Metso Materials Technology and CERN LHC". Metso. Retrieved 2009-07-08.
- ^ "Metso Materials Technology and ITER". Metso. Retrieved 2009-07-08.
- ^ "Stock exchange release September 1st, 2011". Metso. Retrieved 2012-04-04.