Metso Paper has bought the entire share capital of Shanghai-Chenming Paper Machinery Co
Metso Paper has made an agreement to buy the entire share capital of Shanghai-Chenming Paper Machinery Co, a Chinese manufacturer of paper machines. The company is currently owned by Shandong Chenming and Shanghai Heavy Machinery, and it is located in the Shanghai area in Jiading.
The finalisation of the transaction is subject to approval by the Chinese authorities and will be published after the finalisation.
The Shanghai-Chenming Paper Machinery’s foundry and machine shop manufacture primarily narrow paper and board machines for the Chinese market as well as dry end components. The company employs 630 people, and its net sales in 2004 amounted to about €13m.
“When finalised, the acquisition will enable us to better serve not only our Chinese customers but also the pulp and paper industry in Asia,” says Risto Hautamäki, Metso Paper president. “The Shanghai area is also excellent in terms of developing the purchasing function.”
China’s paper industry is growing strongly, with about half of the orders for new large paper manufacturing lines since 2000, coming from China.
Metso Paper is a leading supplier of paper machinery in China, and its strategic objective is to strengthen its presence in customer service, servicing, manufacturing, and sourcing.
The company’s current main owner, Shandong Chenming, is one of the biggest paper manufacturers in China and a Metso Paper customer. Metso Paper has delivered several paper machines to Shandong Chenming’s mills in Shouguang and Wuhan. The most recent order was for the world’s biggest deinking and paper manufacturing lines, which will start up at the end of 2006.
Metso is a global engineering and technology corporation with 2005 net sales of approximately €4.2bn. Its 22,000 employees in more than 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries.
