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Metso BoD approves strategy for Valmet Corporation
03
Sep '13
In preparation for Metso’s planned demerger, the Board of Directors has approved the strategy, organization, and financial targets for the new Valmet Corporation.

Valmet’s strategy

Valmet will focus on delivering technology and services globally to industries that use bio-based raw materials. Valmet’s vision is to become the global champion in serving its customers, and its mission is to convert renewable resources into sustainable results.

Valmet’s main customer industries are pulp, paper, and energy. All of these are major global industries that offer growth potential for the future. Valmet will complement its core business by applying its technology and know-how to industries beyond biomass, particularly in the energy sector.

Valmet’s product and service portfolio consists of productivity-enhancing services, plant upgrades and rebuilds, new cost-efficient equipment and solutions for optimizing energy and raw material usage, and technologies increasing the value of its customers’ end-products.

Valmet’s Must-Win initiatives to achieve strategic targets

Valmet will seek to achieve its strategic goals by pursuing the following Must-Win initiatives:

1) Customer excellence

- Strengthen key account management to enhance growth at the customer.
- Drive service growth through long term agreements and expanded customer base.

2) Leader in technology and innovation

- Develop more cost competitive and less capital intensive products.
- Create new revenue from biotechnology solutions and new offering.

3) Excellence in processes

- Improve health and safety.
- Reduce quality costs.
- Increase savings from procurement initiatives.

4) Winning team

- Strengthen high-performance culture.
- Continue further globalization of our capabilities to be closer to customers.
- Operating model and reporting structure

Valmet’s operating model will consist of three business lines, five areas, and four support functions. The business lines will be Services, Pulp and Energy, and Paper; and the geographical areas will be North America, South America, EMEA, Asia-Pacific, and China. The four main support functions will be Finance, Strategy and Operational Development, HR, and Communications and Marketing.

Valmet will report its financial results as one segment.

Financial Targets

Metso’s Board of Directors has set the following financial targets for Valmet:

- Net sales growth to exceed market growth

- EBITA before non-recurring items: 6-9%

- Return on capital employed (pre-tax), ROCE: minimum of 15%

- Dividend payout at least 40% of net profit

Comment from Pasi Laine, President and CEO of Valmet Corporation

“Valmet’s goal will be to be the global leader in serving customers in its industries; and its core purpose to convert renewable raw materials into sustainable results.”

“Valmet’s competitiveness will be based on our leading position in providing services and technologies for industries using bio-based raw materials. Our comprehensive services offering, broad service network, and large installed base will provide a solid platform for growth. We will continue to ensure our technological leadership with focused and future-oriented R&D and accelerate the commercialization of our innovations.”

“We are committed to move our customers’ performance forward; and we will continue to develop and sustain our position as a trusted partner for our customers. Together with our highly skilled personnel, we are committed to the future success of Valmet and that of its customers and owners.”

Metso

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