Company type | Public company |
---|---|
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 1st of 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.
Pulp, Paper and Power
Through its Pulp, Paper and Power segment, Metso offers processes, machinery, equipment, services, paper, machine clothing and filter fabrics for the pulp, paper and power 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 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.[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 1st 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.