Metso has entered into an agreement to sell its shares of its joint venture company Shanghai-Neles Jamesbury Valve Company (SNJ) to the other joint venture partner, Shanghai Electric International Economic & Trading Company (SEIC).
The change from a joint-venture–based operation to the directly controlled Jamesbury business is in line with Metso’s long-term strategy to strengthen its valve production and service capabilities in growing markets. States Perttu Louhiluoto, President, Metso Automation, “The Joint Venture with SEIC was an important part of our earlier growth market strategy. Now our focus is on building our own presence in these markets. I am particularly delighted that though we have exited the joint venture, we have agreed on future cooperation with SNJ.” SNJ was established 1990 to produce valves and actuators under the Jamesbury product name for Chinese markets. Metso and SEIC owned a 50% stake each in SNJ. The final closing of the transaction requires regulatory approvals by Chinese authorities, and is estimated to take place during the second quarter of 2013. As per the agreement, Metso will move the production of its Jamesbury® valves from SNJ to Metso Technology Centre in Shanghai.
The Chinese market is world’s second largest valve market, and has a significant growth potential. After the transaction, Metso can develop and grow its valves solutions portfolio independently and offer more comprehensive customer packages. During recent years, Metso has done series of investments in its global valve offering and presence, with acquisitions in Korea and expansions in India, U.S., Finland and Shanghai.