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[July 2008]
Metso Makes Canadian Acquisition
Metso Corp (Helsinki, Finland) has signed an agreement with GE Energy to acquire GE’s Lachine Main Plant, a heavy fabrication and machining facility located near Montreal, province of Quebec, Canada. The transaction is expected to close in mid-August. The parties have agreed not to disclose the financial terms. The acquired assets will be integrated into Metso Minerals’ Mining business line.
The acquisition increases Metso’s supply capacity for large mining equipment. The heavy manufacturing space of approximately 25,000 m2 features major machine tools and lifting power and is serviced by rail lines. The unit has recently been dedicated to the production of hydraulic turbines and power generation equipment. With excellent land and sea connections, the new facility can efficiently service Metso’s customers world-wide. The facility can start the supply of the complete range of Metso’s mining process machinery immediately after the closing. Approximately 200 skilled GE Energy employees are expected to transfer to Metso.
“Listening to our mining customers, we estimate that the current boom is likely to continue for years. Therefore investments in the supply chain are extremely important. The acquired capacity will allow us to provide our mining customers with high quality products on attractive delivery times. It clearly supports Metso’s growth strategy and our commitment to respond to our customers’ needs," said Matti Kähkönen, President of Metso Minerals.
The availability of resources such as capital equipment and core components is an increasingly critical factor in the start-up of new mining projects. Following Metso Park investment in India, which was announced in April, the Lachine acquisition further increases Metso's capacity to serve its customers, said the company.
www.metso.com
ENDS