Wärtsilä’s and Metso’s joint venture cleared by regulatory authorities – name of the joint venture is MW Power Oy

Wartsila Corporation
  • Stock exchange release
14 November 2008 at 1:30 PM E. Europe Standard Time

Wärtsilä and Metso have received the necessary regulatory approvals from the European Commission to close the joint venture combining Metso’s Heat & Power business and Wärtsilä’s Biopower business. The transaction will be closed on January 1, 2009, according to the agreement between Wärtsilä and Metso.

The name of the joint venture will be MW Power Oy. Jorma Lehtoviita, currently Vice President of Metso’s Heat & Power business, is appointed Managing Director. The current Managing Director of Wärtsilä Biopower Oy, Ilkka Heikkilä, is appointed General Manager, Finance and Administration.

“Now that we have received the approvals, we can start integration planning. The long-term business drivers are positive for us,” says Jorma Lehtoviita, Vice President of Metso’s Heat & Power business.

Metso will own 60 % and Wärtsilä 40 % of MW Power Oy. It is estimated that the consolidated annual pro forma net sales of the company will be approximately EUR 130 million in 2008. The technologies of the two companies are complementary. Metso’s fluidized bed combustion technology and Wärtsilä’s grate technology enable a solutions portfolio for a wide range of fuels in power and heating plants.

Wärtsilä and Metso announced in September 2008 that they had signed a contract to form a joint venture. The company will be one of Europe’s leading providers of medium- and small-scale power and heating plants with a focus on renewable fuel solutions.

Metso’s Heat & Power business unit consists of Noviter Oy and VEÅ AB, both subsidiaries of Metso Power. The business unit employs approximately 100 people in Scandinavia, the Baltic countries and Russia. Metso Power designs and manufactures power generation and chemical recovery systems for energy producers and the pulp and paper industry globally.

Wärtsilä Biopower, a part of Wärtsilä Power Plants, supplies and manufactures biomass-fueled combined heat and power plants and heating plants. The company employs approximately 100 people in Finland. Wärtsilä’s engine-based power plant business is not affected by this joint venture and continues to offer a broad range of fuel-flexible power solutions.

For further information, please contact:

Mr Caj Malmsten
Vice President, Finance & Business Control
Wärtsilä Power Plants
Tel: +358 40 733 2978

Mr Ilkka Heikkilä
Managing Director
Wärtsilä Biopower Oy
Tel: +358 40 820 9186

For investor information, please contact:

Ms Josephine Mickwitz
Director, Investor Relations
Wärtsilä Corporation
Tel: +358-400 784 889

Wärtsilä in brief
Wärtsilä enhances the business of its customers by providing them with complete lifecycle power solutions. When creating better and environmentally compatible technologies, Wärtsilä focuses on the marine and energy markets with products and solutions as well as services. Through innovative products and services, Wärtsilä sets out to be the most valued business partner of all its customers. This is achieved by the dedication of over 18,000 professionals manning 160 locations in 70 countries around the world. Wärtsilä is listed on the Nordic Exchange in Helsinki, Finland. www.wartsila.com

Metso in brief
Metso is a global engineering and technology corporation with 2007 net sales of over EUR 6 billion. Its over 27,000 employees in approximately 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries.  www.metso.com