Metso Reviews Development Alternatives for Dynapac

Wed February 04, 2004 - National Edition

Metso Corporation’s board of directors recently decided to initiate a review on the development alternatives for Dynapac, including a potential divestment.

Construction and paving equipment manufacturer Dynapac operates as an independent business with relatively limited synergies with the other businesses within Metso Minerals.

“Dynapac is an excellent and profitable business, which has strengthened its market share in 2003 in new, growing markets such as China. However, Metso Minerals is not able to fully take advantage of Dynapac’s potential”, said President of Metso Minerals Bertel Langenskiold.

Dynapac, which forms the compaction and paving business line of Metso Minerals, is a leading global manufacturer of compaction and paving equipment. Dynapac designs, manufactures and sells under its brand name rollers, pavers, planers and concrete and light compaction equipment and services.

In 2003, the net sales of Dynapac totaled 322 million euros, which represents less than a fifth of Metso Minerals’ net sales.

Dynapac has seven manufacturing plants, located in Sweden, Germany, France, Brazil and China. In addition, the company has sales and marketing outlets in approximately 50 countries.

Metso Corporation is a global supplier of process industry machinery and systems, as well as know-how and aftermarket services. The corporation’s core businesses are fiber and paper technology, rock and mineral processing and automation and control technology.