Automation Industry

Growth by Acquisition: Automation Specialist Metso Targets new Markets

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Related Companies

Metso suggest that ExperTune has an extensive sales representative network on all continents: their partnerships include a significant global relationship with Invensys Operations Management, plus reseller relationships with Honeywell and Siemens. Whilst such companies will probably wish their ExperTune sales relationship to continue, and might have no problem in working with the Metso control valve products, further expansion of Metso into services contracts via these sales routes might not be so straightforward.

The Metso Business Profile

At a Capital Markets Day in December, the Metso group management presented their current operating profile and business plans to analysts and investors. Year end is 31 December, so 2012 results are as yet unknown, but on the basis of Q3 will be better than 2011, with sales around Euro7Bn ($9Bn). The major parts of the business are in mining and construction (44%), paper, board, tissue and pulp (30%): then follow automation at 12% and power at 11%.

In pulp, paper and power, which is one division, they have developed significantly in bio-refining for pulp and paper mills – possibly mainly in South America, and biomass and waste fired boilers for heat and power – mainly in Europe.

Automation is Key Industry for Finnish Company

The automation division, run by Perttu Louhiluoto, occupies a key position within the whole business, supplying automation systems and control valves in support of the other divisions: they see this division as having the potential for higher than average growth and margin in the main Metso vertical markets, as well as on its own initiative in external markets like oil and gas. Within all their businesses Metso Group see the service element as important, and giving opportunity for growth and increased profitability from the existing installed base of equipment.

The automation objective was also defined as ‘Helping the process industries generate more output from less input’: hence the interest in ExperTune. Automation business structure There are two main business areas: valves and automation systems.