Metso Minerals concludes integration

Metso reports that the timing of the integration of the Svedala businesses into Metso Minerals has proceeded as planned since their acquisition in September 2001, while results have been better than anticipated. At the beginning of the integration process it was estimated that the annual synergy benefits would amount to EUR 70 million, to be realised in full during 2003. During the integration process, the target has been revised upwards to in excess of EUR 90 million, of which half is expected to be realised already in 2002. The synergy benefits have been revised upwards because of better than expected results in the restructuring of manufacturing capacity and the combining of the distribution organisations. Metso Minerals has made decisions about selling or closing 12 production units, mainly in North America. Of these, 9 had already been sold or closed by the end of September 2002 and the rest will be concluded by the end of the year. The integration of distribution operations has been completed and as a result about 70 distribution and service units have been closed. These decisions will reduce the number of personnel by about 1800 from the beginning of integration to the end of 2002. At the end of June 2002, the amount of Metso Minerals’ personnel was 11,040. In addition, four non-core businesses – Robot Pumps, Kranlyft, Interconsult and Rolac – have been sold or shut down. The combined external net sales of the units totaled EUR 79 million in 2001. One-time costs of the integration and restructuring, including related tax benefits, will be about EUR 70 million.

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