Metso Corporation has announced a strategic review into the feasibility of spinning-off its pulp, paper and power businesses into a new company. If this were to go ahead, it would leave the company’s mining and construction division and automation business in the original corporate entity.
Metso’s chairman Jukka Viinanen said, “Both of them are strong global businesses with well-established positions in their customer industries. By separating the two, we would seek to accelerate strategy implementation, as clearer business structures would increase the focus and ambition of the two companies with distinct growth strategies. The Board also believes that both companies would be seen as attractive investments, which has the potential to increase value for our shareholders.”
Metso president and CEO Matti Kähkönen added, “Developing Mining, Construction and Automation and Pulp, Paper and Power businesses separately would help the already strong two entities to fully realise their potential. This would in turn benefit our customers and personnel through more focused management, superior competence development and customer services, and through enabling both companies to cultivate their technology and services offering that would match their goals perfectly.”
The company added that the study into a possible separation would look at a range of issues, including the implications for tax and finance. Metso also said it would discuss the question with its stakeholders, with a view to reaching a decision by the end of June this year.