Press Information

MHI to Transfer Pulp & Paper Machinery Business to Metso Paper
In Move to Concentrate Business Resources into Focused Areas

No.1224
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Tokyo, February 15, 2008 - Mitsubishi Heavy Industries, Ltd. (MHI) has concluded an agreement with Metso Paper, Inc. of Finland and its Japanese subsidiary, Metso Paper Japan Co., Ltd., under which MHI will transfer its pulp and paper machinery business to the two companies. The transfer, which is subject to approval by concerned authorities, is scheduled to take place effective March 31, 2008.

MHI's pulp and paper machinery business includes pulp machinery, stock preparation equipment, papermaking machinery and coaters. Since its entry into the pulp and paper machinery market in 1951, MHI has provided an array of high-speed and high-quality machinery and equipment, as well as related engineering work, to meet the market's needs. The company has now opted to transfer its pulp and paper machinery business to Metso Paper, a global leader in this industry, and its Japanese subsidiary in order to further promote selection of focused business areas and concentration of its business resources into those areas.

Being a supplier of a full range of pulp and paper machinery, Metso Paper, a successor of Valmet and Rauma pulp and paper machinery businesses, undertakes operations and production in 28 countries. Its products and services are handled by 24 sales units and more than 40 service centers at points around the globe.

MHI chose Metso Paper as the most suitable counterpart to transfer its business for several reasons. First, MHI and Metso Paper jointly own the patents and intellectual property rights to paper machinery technology of the former Beloit Corporation of the U.S. Second, as just noted Metso Paper and its group companies have numerous production and service centers worldwide and can provide high-level after-sales services for machinery MHI has already delivered to its customers. With the transfer of business from MHI, Metso Paper will mainly benefit by expanding its business through after-sales servicing of machines previously delivered by MHI.

Under the deal, MHI will transfer its entire pulp and paper machinery business, including after-sales services. The transfer will also include technical documents, designs and intellectual property rights to the equipment concerned. For machinery still within the warranty period, including machinery yet to be delivered or under installation, MHI will be responsible until the warranty expiration date. In transferring its business, MHI will retain its current employees and redeploy them within the company's Paper & Printing Machinery Division.


Outline of Metso Paper and Metso Paper Japan

Metso Paper, Inc.    
1. Major activities:   Manufacture, sale and servicing of pulp and paper machinery, including tissue paper and panel board production machinery, and boilers for power generation systems and environmental systems, mainly for the pulp and paper industry
2. Establishment:   June 8, 1999
3. Head office:   Helsinki, Finland
4. Capital:   65 million euro
5. President:   Bertel Langenskiöld
6. Number of employees:   11,700 (approx.)


Metso Paper Japan Co., Ltd. 
1. Major activities:   Engineering and servicing in Japan for papermaking machinery, finishing machinery, pulp machinery, causticizing plants and control systems
2. Establishment:   September 18, 2003
3. Head office:   2-4-1, Shiba-Koen, Minato-ku, Tokyo, Japan
4. Capital:   480 million yen
5. President:   Hiroshi Miura
6. Number of employees:   80 (approx.)