Metso Increases Valve Manufacturing Capacity In China.
India, May 1 -- Metso has entered into an agreement to sell its shares of its joint venture company Shanghai-Neles Jamesbury Valve (SNJ) to Shanghai Electric International Economic & Trading Ltd (SEIC), which is the other joint venture partner.
At the same time, good cooperation continues between Metso, SNJ and SEIC as companies have agreed several future cooperation areas. Metso will move its Jamesbury valves production from SNJ to Metso Technology Center in Shanghai.
The change from a joint-venture based operation to directly controlled Jamesbury business is in line with Metso's long-term strategy to strengthen its valve production and service capabilities in growing markets. Chinese market is world's second largest valve market with significant growth potential. After the transaction Metso is able to independently develop and grow its valves solutions portfolio and offer more comprehensive customer packages.
"This transaction emphasizes the significance of the Chinese market for Metso and Metso's commitment to increase its presence near the customers," states Perttu Louhiluoto, President, Automation, Metso. "The Joint Venture with SEIC was an important part of our earlier growth market strategy. Now our focus is in building own presence in these markets. I am particularly delighted that while we have exited the joint venture, we have agreed on future cooperation with SNJ," he also added.
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