Metso Paper opens new office in China.

METSO PAPER OPENS NEW OFFICE IN CHINA. Metso Paper, Helsinki, Finland opened a new branch office in Jinan, Shandong, China in September. The new office in this region, one of the most important paper industry areas in China, was opened to strengthen Metso Paper's customer service for the Chinese paper and board industry.

IN OTHER METSO NEWS:

* Metso Automation has opened a new web site in Chinese as a new information channel for its Chinese customers. At this phase, the content of the site focuses on Metso Automation's capabilities to serve the pulp and paper industry and present Metso Automation's local operations in China. Metso Automation's Chinese web site can be accessed directly at www.metsoautomation.com/cn or via Metso Paper's China website (www.metsopaper.com/cn) main navigation.

* Metso Paper will supply a board machine designed for the manufacture of high quality recycled packaging grades to Smurfit Espana S.A. in Mengibar, Spain. The machine will start up in mid-2005. The value of the delivery is approximately EUR 20 million (US$ 16.3 million). Board machine width is 5.55 meters, and its design speed is 1000 meters per minute, producing two-ply fluting, test liner, and white top test liner (WTTL, WTTLC) in the 80-200 g/[m.sup.2] basis weight range. Daily production capacity will be 700 metric tons.

* Kemiart Liners has ordered Metso Automation's IQSteamPro steam box for its Kemi board mill's Number 1 production line. The machine produces approximately 345,000 tons of white kraftliner annually, with most of its production being coated.

* Metso Paper has entered into a long-term agreement with Bender Machine Services LTD, United Kingdom, on a worldwide service program for Yankee and MG cylinder grinding and thermal spraying, effective October 1, 2004. Under the agreement, Metso Paper will cease its production of Yankee and MG cylinder grinding services and Bender alone will perform these services. Bender will further continue performing thermal spraying of cylinders. The services will be provided by Bender either as separate service actions or as part of Metso's drying performance packages. Both companies will market the services.

* Mondi Business Papers SA's Merebank mill in Durban, South Africa, has placed an order with Metso Paper for a high capacity WinDrum Pro winder and an extensive roll handling system including a radial stretch wrapper and a roll lowerator system. The WinDrum Pro for the rebuilt Number 31 paper machine, will be the fourth consecutive Metso winder supplied at the mill.

* Metso Paper invested in a polyurethane production line at its Service Technology Center in Cernay, France. The facility produces polyurethane-based roll covers for paper and board machines. It can cover all kinds of paper, board, tissue and fiber machine rolls using all current cover materials: rubber, composite, ceramics, other thermal coatings, and now polyurethane. The Cernay center is also fully equipped for roll maintenance and modifications.

* Metso Paper will supply a new market pulp line for Rottneros Group's Utansjo mill in Sweden. The line, valued at EUR 10 million (US$ 12.3 million), will start up in March 2005. The plant will manufacture CTMP (chemi-thermomechanical pulp) from hardwood with an annual production capacity of 100,000 metric tons. Metso Paper's delivery will consist of process machinery, process engineering, training, erection and start-up of the CTMP line.

* The company has also agreed to supply a three-line wood handling plant to CMPC Celulosa S.A. for the company's Santa Fe Mill Expansion project, Nacimiento, Chile. The EPC order will be started up in autumn 2006 when the mill expansion is completed. The order is valued at roughly EUR 32 million (US$ 39.3 million). The mill uses eucalyptus globulus and eucalyptus nitens as its raw material. Annual processing will be about 3.8 million solid cubic meters. The design capacity of the new mill is 780,000 metric tons of bleached eucalyptus market pulp.