Sumitomo Heavy Industries and Metso set up joint venture for pulp & paper machinery

June 03, 2003

Sumitomo Heavy Industries, Ltd. (SHI), Metso Paper Inc. and Metso Automation, Inc. (Metso) have agreed to form a joint venture company for paper, board and pulp machinery and specified automation products. Through the joint venture, all Metso Paper and Metso Automation technology will be available for Japanese customers.

This new arrangement makes it possible for SHI and Metso to combine their resources for pulp, paper and board machinery, including automation, into one entity, which offers customers a broader scope of products and services.

The new joint venture company will base its activities on the SHI-Metso co-operation, which dates back to 1976. Metso's and SHI's customer contact persons and process & machinery experts will join the new company, allowing customers to rely on the same persons as in the past.

It will source its machinery from Metso Corporation globally and Sumitomo Heavy
Industries' Techno Fort in Japan.

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 (JPY 650 billion) and the personnel approximately 28,500 in total. Metso Corporation is listed on the Helsinki and New York Stock Exchanges.

Together Metso Paper and Metso Automation form a strong entity serving the pulp and paper industry. Metso Paper offers a wide range of high quality and innovative products and services from single processes and production lines to complete projects, supported by a global customer service organization.

Profile of the new company:
1) Name: Under discussion

2) Description of business: Engineering, procurement, sale and service of paper and pulp machinery and specified automation products (except tissue technology)

3) Commencement of operation (scheduled): October 2003

4) Head office: Tokyo, JAPAN

5) Capital 450,000,000 yen

6) Fiscal year closing end of December

7) Number of employees Approx. 40

8) Shareholders: Metso (65 %) Sumitomo Heavy Industries, Ltd. (35 %)