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|Traded as||Nasdaq Helsinki: MEO1V
|Predecessor||Valmet, Rauma Oy|
|Mikael Lilius (Chairman), Matti Kähkönen (President and CEO)|
|Products||Industrial company serving the mining, construction, recycling, oil and gas, pulp, paper and process industries.|
|Revenue||€2,977 million (2015)|
|€555 million (2015)|
|Profit||€442 million (2015)|
|Total assets||€3,209 million (end 2015)|
|Total equity||€1,444 million (end 2015)|
Number of employees
|12,000 (end 2015)|
Metso is an industrial machinery company focusing on providing technology and services for mining, aggregates, and oil and gas, recycling, pulp and paper and other process industries. The company employs 12,000 people in 50 countries. Metso’s shares are listed on the NASDAQ OMX Helsinki, Finland.
- 1 History
- 2 Organization
- 3 Share
- 4 Recognitions and awards
- 5 References
- 6 External links
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 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.
Metso was created on July 1, 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.
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 6 500 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.
Sundberg and Hakala did not stay that long in Metso’s management. Tor Bergman became the new President and CEO in 2001. In 2001, Metso’s net sales were EUR 4.7 billion, and it had 28,500 employees.
The new Metso Group was divided into three business areas:
- Fiber and Paper Technology
- Automation and Control Technology
The merger of Valmet and Rauma 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
- Metso Automation
The aim of the plethora of business acquisitions made in the 2000s 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 Bergman's successor. He started in March 2004.
Between 2004 and 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.
By 2008, Metso had become Finland’s ninth largest company and the number of Metso shareholders had increased from 25,000 to 42,000. Metso strengthened its market position and service capacity in growing markets, particularly in India and China. During 2008, the expansions to the Ahmedabad foundry and the Bawal factory in India were completed.
Metso also purchased the paper machine technology of Japanese Mitsubishi Heavy Industries’ (MHI), making Metso the sole owner of Beloit’s paper machinery intellectual property globally.
In September 2008, Metso sold 83% of its foundry in Sweden to an investment group assembled by the Primaca investment company. The Metso Foundries Karlstad unit specialized in casts of wind power components, diesel engine blocks and Yankee cylinders for paper machines.
By 2009, half of Metso’s orders received in 2009 came from emerging markets, compared to less than one fifth in 1999. In the same year, Metso entered into a combination agreement with Tamfelt, one of the world’s leading suppliers of technical textile. Subsequently, Metso made a public exchange offer for all of Tamfelt’s shares.
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 2000s was to manufacture wide, high-speed paper machines and discontinue its traditional paper machine concepts.
Matti Kähkönen was appointed the new President and CEO of Metso Corporation on March 1, 2011. Previously, Kähkönen had headed Metso’s Mining and Construction segment. Despite the global economic uncertainty, Metso’s profitability grew steadily in 2011. The services business, with a value of over three billion euros, accounted for about 40 percent of orders received in 2011.
Metso opened new plant and office facility for valve, positioned and actuator manufacturing, R&D, customer training and local services in Vantaa, Finland. The lay of the new factory is based on Lean manufacturing model. The new facility replaced the operation premises in Roihupelto industry area in Helsinki where the company was producing valves for nearly 50 years.
In August, Metso acquired the mining services business of Copperstate Industrial Services, based in Arizona, USA. The acquired business aimed to strengthen Metso’s position as a leading service and technology provider for the mining industry in North America and Mexico.
In August 2011, Metso entered into a joint venture agreement with the Chinese SAC, Guodian Nanjing Automation to support Metso’s strategy in the power automation control systems market in China. In December 2011, Metso sold its workshop in Valkeakoski, Finland, with all related equipment and screen basket manufacturing.
In September 2012, Metso announced the need for a personnel reduction of more than 600 Finnish employees in several of its business units serving the paper industry and paper production. The reason for the reductions is structural change in the industry and due to that the weakening of paper business unit’s competitiveness and profitability: competition has increased, demand for paper machine and foundry products has weakened. Customers want cheaper solutions than before. Metso had planned to give extra dividend for its shareholders but after the decision of paying dividends while cutting staff was criticized e.g. by personnel and the Finnish politics the decision was cancelled.
In November 2012, Metso agreed to form a joint venture with China’s LiuGong Group to develop the track-mounted crushing business in China. Also in November, Metso acquired 75 percent of Shaorui Heavy Industries, one of China’s leading mid-market crushing and screening equipment producers.
Metso also entered new markets with the acquisition of the South Korean valve manufacturer Valstone Control Inc. Additionally, Metso consolidated its valve operations in the United States into new premises in Massachusetts and opened a new valve supply and service center in Vadodara, India.
In December 2012 Metso closed the acquisition of U.S. software company ExperTune Inc. ExperTune’s products are widely used as software tools to analyze and monitor the performance of industrial processes and to identify the associated maintenance and improvement opportunities.
In August 2013, Metso closed the acquisition of Chinese manganese steel foundry JX. The acquisition improved Metso's ability to supply wear parts to the mining and construction industry in China.
2013 company demerge
On October 1, 2013, the Extraordinary General Meeting approved the demerger of Metso into two companies. At the start of 2014, Metso Corporation’s Mining and Construction business and Automation business formed the new Metso Corporation and Metso’s Pulp, Paper and Power business formed a new independent company under the name Valmet Corporation.
In December 2013 Metso reduced its holding in Valmet Automotive to approximately 41%. As a result of this arrangement, Valmet Automotive ceased to be a Metso subsidiary.
2014 focus on minerals processing and flow control
On July 31, 2014, Metso announced its new strategy and operating model, designed to drive growth in the company's core businesses and strengthen its financial performance and value creation. Metso's core customer industries are mining, oil & gas and aggregates. The company's goal, as it states in Metso's strategy, is to strengthen its position as the leading technology and services provider for end-to-end minerals processing and to become a leader in flow control within the oil and gas and mining industries.
Metso is a technology and services supplier. Today the company’s operations are divided into two businesses, i.e. reporting segments.
- Services, providing primarily minerals customers with full-scope services solutions, ranging from spare and wear parts all the way to performance services.
- Minerals: responsible for providing minerals processing solutions for mining customers and crushing and screening products for aggregates customers, as well as system deliveries.
- Flow control: responsible for developing and growing both the valve offering mainly for oil and gas customers as well as pumps for mining customers by pursuing opportunities in these markets.
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 (since completion of the demerger on December 31, 2013):
- Mikael Lilius (Chairman since December 31, 2013. Board member since March 28, 2013.)
- Christer Gardell (Vice Chairman since December 31, 2013. Board member since 2006.)
- Ozey K. Horton, Jr. (2011–)
- Eeva Sipilä (2012–)
- Wilson Nelio Brumer (2013–)
- Lars Josefsson (2013–)
- Nina Kopola (2013–)
Metso Executive Team
The Executive Team includes the following members (since completion of the demerger on December 31, 2013):
- Matti Kähkönen, President and CEO
- Harri Nikunen, CFO
- João Ney Colagrossi, President, Mining and Construction
- Perttu Louhiluoto. President, Automation
- Simo Sääskilahti. Senior Vice President, Strategy and Business Development
- Merja Kamppari, Senior Vice President, Human Resources
Metso provides full-scope of services ranging from field service and repair to spare and wear parts all the way to performance service solutions primarily to mining and aggregate customers. Metso also provides minerals processing solutions for mining customers, crushing and screening products for aggregates customers, as well as recycling solutions, and system deliveries.
Products and services
In addition to spare parts and expert and maintenance services, the business area offers its customers
- Full-scope solutions for the mining industry
- Grinding mills and grinding solutions
- Crushers, crushing solutions, process equipment, such as pumps, filters, thickeners, separation equipment
- Mobile crushers and screens
- Bulk materials handling solutions and conveyors
- Shears, balers and shredders
Customers operate in the mining and aggregates industries (for example, mines and mineral processing plants, engineering houses, quarries and contract crushing operations). Recycling customers include scrap yards, waster handling companies and recycling.
Metso Mining and Construction is among the market leaders in grinding mills, mining crushers, and in crushing and screening plants for the construction industry. Its biggest competitors in the mining industry include FLSmidth, Outotec and ThyssenKrupp, and in the construction industry Terex, Atlas Copco, Caterpillar and Sandvik.
Metso’s Automation segment supplies process industry flow control solutions, automation and information management systems and applications, and services. The business sector was formed in 1999 through the merger of the process automation systems manufacturer Valmet Automation and Neles Controls, a manufacturer of valves and flow control systems.
It consists of three businesses: Process Automation Systems, Flow Control and Services. In 2012, the biggest of the businesseswas Flow Control (net sales of EUR 449 million). In the same year, the Services business net sales were EUR 217 million, and in Process Automation Systems business EUR 194 million.
Products and services
In addition to expert and life-cycle services, the business area offers its customers
- Process automation and information management application networks and systems under Metso DNA brand
- Process measurement systems and analyzers
- Control, on-off and emergency shutdown (ESD) valves under Neles, Jamesbury and Mapag brands
- Intelligent positioners and condition monitoring
The customers of Metso Automation operate in the power generation, oil, gas, pulp, paper, mining and construction industries.
Metso’s competitors in automation systems include ABB Group and Honeywell, and in valves Emerson Process Management, General Electric and Flowserve. Metso Automation is a market leader in valves and automation solutions for the pulp and paper industry.
Products and services
In addition to expert and life-cycle services, the Metso's process automation offering includes:
Metso 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. As part of this process, Metso evaluated both external and internal options. On October 25, 2012, Metso announced that Metso Recycling will be integrated into Mining and Construction as of December 1, 2012.
Metso’s share is listed on the Helsinki Stock Exchange. The share was previously traded also on the New York Stock Exchange, but the listing there ended on September 14, 2007 and now, in the US, it is exchanged on the over-the-counter (OTC) market.
Metso’s biggest registered shareholders on December 30, 2013 were:
- Solidium Oy 11.1
- Ilmarinen Mutual Pension Insurance Company 3.0%
- Varma Mutual Pension Insurance Company 1.9%
- Nordea Funds 1.2%
- The State Pension Fund 1.1%
- Nordea Nordenfonden 1.0%
- OP Funds 1.0%
- Keva 1.0%
- Mandatum Life Insurance Company Limited 1.0%
- Svenska letteratursällskapet I Finland r.f. 0.8%
Recognitions and awards
In 2012, Metso employee Mika Viljanmaa, received the SEK 2 million Marcus Wallenberg Prize, which is often dubbed “the Nobel Prize of the forest industry”. Viljanmaa is a prolific innovator who has a total of 120 protected inventions, 57 of them related to metal belt technology. He received the prize for his groundbreaking development of metal belt calendering used in paper and board making. Metal belt calendering technology improves the surface properties of paper, increases production efficiency, lowers the use of fiber raw materials, and enables pressing and drying applications. Compared to conventional calendering, metal belt calendering produces a smoother finish on paper and board. The initial research and tests with the technology were conducted in 1996–2000, and the first application was deployed in 2006. Today the global production capacity based on the technology is 2.2 million tons per year.
In January 2014, Metso's mobile crushing plant Lokotrack LT106 received an honorable mention in the Fennia Prize 2014 design competition for its strong industrial design input, usability and serviceability, and a safer working environment.
- "Annual Review 2015" (PDF). Metso. Retrieved 2016-07-18.
- "Financial Statement 2015" (PDF). Metso. Retrieved 2016-07-18.
- "Our history on Metso's website". Metso. Retrieved 2012-10-22.
- "The late 1990's - Metso is born on Metso's website". Metso. Retrieved 2014-02-06.
- "21st century - Acquisitions and divestments". Metso. Retrieved 2012-02-06.
- http://www.metso.com/corporation/about_eng.nsf/WebWID/WTB-050830-2256F-2CF8D?OpenDocument#.VK0KPyusWb8. Metso. Missing or empty
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- "Our businesses at a glance on Metso's website". Metso. Retrieved 2012-10-22.
- "Metso's management on Metso's website". Metso. Retrieved 2012-10-22.
- "Board of Directors on Metso's website". Metso. Retrieved 2013-05-14. Cite error: Invalid
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- "Executive team on Metso's website". Metso. Retrieved 2012-05-14.
- "Mining and Construction on Metso's website". Metso. Retrieved 2013-05-14.
- "Automation on Metso's website". Metso. Retrieved 2013-05-14.
- "Resource saving metal belt calendering giving better paper surface awarded the 29th Marcus Wallenberg Prize on The Marcus Wallenberg Foundation's website". The Marcus Wallenberg Foundation. Retrieved 2012-10-29.
- "Metso's crusher design awarded honorable mention in Fennia Prize design competition".