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Metso in China
Morgan Stanley China
Industrial Summit Beijing, May 31, 2013
Nalle Stenman, SVP, Finance and Admin,
Pulp, Paper and Power
© Metso
1. This is Metso
2. Metso and its
businesses in China
3. Market and segment update
4. Business environment
in China
5. Summary
6. Appendix
Content
2
© Metso
Net sales in 2012
EUR 7.5 billion
Sustainable technologies and services for
process industries
• Customer industries include mining,
construction, pulp and paper, power,
oil and gas
• Global player with leading market
positions in its businesses
• Strong focus on services, thanks to
large installed base
• Strong presence in the fast-growing
emerging markets
• Strong focus on environmental
solutions and sustainable
technologies
• Emphasis on implementing strategic
approach to sustainability
• Shares are listed on NASDAQ OMX
Helsinki Ltd.
3
Services
44% of net sales
© Metso
Metso businesses Strong positions already, aspiring more growth
• Strong market position and
global market leadership in a
number of areas
• Long and deep exposure to the
fast-growing industry
• Selective M&A growth
• Strong in emerging markets
• Large share of services
• Predominantly supplying big
mining players
• Improving supply chain
management
• Niche player with strong
positions
• Very strong megatrends driving
long-term growth
• Room for M&A growth
• Europe and North America
focused; building capabilities in
Europe and selectively
exploiting opportunities in
North America and in the
emerging markets
• Very strong global market
position
• Potential for good near-to-
medium-term growth
• Growth in China and Latin
America
• Predominantly organic growth
• Growing services business
• Further margin improvement
• Ongoing transfer of resources
to China and Brazil
4
Mining and
Construction Pulp, Paper and Power Automation
© Metso
Group key figures
5
* before non-recurring items
** Includes non-recurring items of EUR -36 million in FY 2012
EUR million 2012 2011
Change
%
Orders received 6,865 7,961 -14
Services orders received 3,264 3,100 5
Net sales 7,504 6,646 13
Services net sales 3,174 2,871 11
% of net sales 44 45
EBITA * 688 629 9
% of net sales 9.2 9.5
EBIT ** 602 572 5
Earnings per share, EUR 2.46 2.38 3
Personnel 30,212 30 ,324 0
Net sales and EBITA % *
© Metso
Extensive sales, services and manufacturing
network built over 20 years
6
Metso and its business
in China
© Metso
Our major milestones in China in 1933 – 2013
8
1950s Start of continuous business
• First complete fiberboard plant delivered
• First crushing equipment delivered
1970s New deliveries and rebuilds
• Thermo-mechanical pulp plant delivered
• Rebuilds of sack paper and newsprint machines
1980s First joint venture
• Valmet-Xi’an joint venture for paper machine manufacturing established
• Upgrades and rebuilds of pulp and paper machinery
• Complete coal handling system delivered
• Large grinding mills delivered
1990s First fully owned plant
• Crusher manufacturing plant established (Tianjin)
• Fiber technology representative office opened (Beijing)
• World’s first OptiConcept newsprint line (Nanping) starts production
2010 Valve and automation technology center
Metso Technology Center for flow control and process automation systems opened (Shanghai)
2000s Service centers and additional manufacturing plants
• Pulp and paper service centers opened (Wuxi, Guangzhou and Zibo)
• Manufacturing and workshop for stock preparation and recycled fiber production opened (Shanghai)
• Paper and board machine workshop opened (Jiading)
• Metso (China) Investment Co., Ltd established (Shanghai)
• Crusher manufacturing plant expanded (Tianjin)
2012–13 Strategic development in construction
• 50% – 50% joint venture with LiuGong Group Corp. Ltd. to develop track-mounted crushing and screening business
• Warehouse for crusher spare parts opened (Kunming)
• Metso’s acquisition of JX manganese steel foundry and 75% ownership of Shaorui Heavy Industries Ltd. to strengthen service presence and capabilities in mining and construction
1933 1950 1960 1970 1980 1990 2000 2010 2013
1930s First deliveries
Paper machine to Guangzhou Paper and a ball mill to Shanghai Mint
© Metso
Metso serves several key process industries
throughout China
9
First
production
unit / joint
venture in
China in 1989
2012 net
sales in
China EUR
664 million
Extensive sales, service
and manufacturing
network serving mining,
construction, recycling, oil
and gas as well as pulp,
paper and power
industries
First delivery
to China in
1933
More than
3,100
employees
Major strategic
development in
construction with
joint ventures and
acquisitions in
2012-2013
• Metso locations in China
Around 1,500
key customers
in China
© Metso
Contributing to the well-being of communities
and the environment
10
Metso is involved in many programs that are
helping to build the well-being of
communities and the environment.
• Working with the Chinese Red Cross, Metso
supported the rebuilding of two schools in
Sichuan Province after the 2008 earthquake
• Working with Plan International, Metso
participated in water and sewer infrastructure
improvement projects in 2008 and 2010 in
Shaanxi Province
• Metso has provided scholarships to top
industry universities since 2009
• In 2012, Metso joined WWF China’s Initiative
Business Alliance for Sustainability (a network
of companies that supports environmental
work in China)
© Metso
Operations in China
• China is one of Metso’s fastest growing markets. Currently, Metso has
more than 3,100 employees in China and a local network of
manufacturing, sales and services
• Operates in six (6) fully owned factories, three (3) service centers, three
(3) joint ventures with local partners
• Our mining and construction segment is currently finalizing three (3)
M&A cases in China (mobile equipment, midmarket segment as well as
a steel foundry)
• Supports the Chinese pulp and paper industry, aggregates production
and mining sector, energy, oil and gas industries, and power producers
• First deliveries to China were in 1933 through Metso’s predecessor, and
the first joint venture was established in 1989
• In 2012, net sales in China were EUR 665 million, and orders received
EUR 618 million. China was in the TOP 3 countries globally
11 11
© Metso
• Customers: Pulp and paper,
power generation
• Locations: Beijing, Wuxi,
Guangzhou, Shanghai,
Xi’an Zibo, Tianjin
• About 2,200 employees
Metso in China
Metso businesses
12
• Customers: Energy, oil &
gas, chemical &
petrochemical, power
generation, pulp and paper
industry
• Locations: Shanghai,
Beijing, Guangzhou,
Chengdu, Nanjing
• Around 470 employees and
680 employees in joint
ventures
• Customers: Quarries,
aggregates production,
mining industry, construction
• Locations: Tianjin, Beijing,
Shanghai
• Close to 400 employees
Mining and Construction Automation Pulp, Paper and Power
© Metso
Mining and Construction in China
Main customer segments
• Mining operations, pyro
processing plants, ports
& terminals
• Aggregates producers, dam &
road construction, steel industry
• Mining customers cover over
half of our sales
- Large coal terminals, in particular,
have invested in bulk materials
handling systems in recent years
13
© Metso
Automation in China
Main customer segments
• More than 500 customers
in China
• Key customers are energy, oil
and gas companies, and pulp
and paper companies
• Strongest sales growth is
expected from the energy, oil
and gas industries
• China’s rapid economic growth
requires energy, which is
produced at local coal power
stations
14
© Metso
Pulp, Paper and Power in China
Main customer segments
• Customers include major local
and global producers of pulp,
paper, board, tissue and power
generation
• A solid track record and a
trusted brand name give an
edge in a market where
customers expect suppliers to
operate clearly faster than in
Europe
15
Market and business update
© Metso 17
Mining Business
Sector drivers
• Iron & Steel
• Nonferrous Metals
• Gold
• Coal
• Ports
© Metso 18
160
200
72
210
16
40
0
50
100
150
200
250
Year 2006 Year 2011
Mill
ion
Eu
ros
Low End Middle End Top End
Changes in aggregate market
Mid-end market grew by almost three
times 2006-2011
Data Source: China National Bureau of Statistics
• China’s aggregate production
increased from ~ 2 billion tons in
1995 to 8 billion tons in 2010 and is
forecasted to reach 11.5 billion tons
by 2015.
• Increase in aggregate demand,
international players still no threat
due to price positioning,
technological shift China’s total
incremental aggregate production
has been driven by local mid-end
manufacturers.
• The dominant low-end segment
could not grow much due to
enterprise limitation and
technological shift in aggregate
production.
© Metso
Continuous growth of road construction in China Annual data on total road miles in China
19
• Second largest state highway network in the world, increasing
from 74,100 km to 10,800 km by the end of 2015
• Total road miles will reach 4,500,000 km in 2015
3,457 3,584 3,730 3,861 4,008
4,500
-
1 000
2 000
3 000
4 000
5 000
2006 2007 2008 2009 2010 E2015
'000 k
m
Data Source: China National Bureau of Statistics
© Metso
Growth driver: large investment in railway projects
20
Sustained investment in rail infrastructure
• China’s rail transport network is second largest in the world by 2010; over
91,000 km of railroad lines in service
• 120,000 km of railroad lines in service by the end of 2015
• 41.4% increase in infrastructure investments within the next five years
Plans to invest
EUR 280 billion in
infrastructure in the
next 5 years!
77 78 80 86 91
120
0
20
40
60
80
100
120
140
2006 2007 2008 2009 2010 E2015
‘000 k
m
Data Source: China National Bureau of Statistics
© Metso
Mining and Construction
Growth drivers in China
• Vast resources to invest in development
• Ever-strict laws and regulations on environmental protection
• Improving IPR protection
Economic power and global integration
•Large geography and population making development a long-term aspect
• Increased domestic needs for infrastructure, transportation and energy
Large population and geography
• Optimization of energy distribution (driver for nuclear and renewable power). Nation’s energy security
• General trends of consolidation, as in the case of Quarries
Policy changes towards sustainable development
• Rich mineral base and continued domestic development in mining and processing Abundant mineral resources
• Technology shift
• Investment by international players further speeding the process of technology upgradation
Technology shift
• West & North Development Program. 79.3% of national water resources are in 12 western provinces and autonomous regions
• West-east power transmission
A vast amount of infrastructure yet to be built
21
© Metso
• Investment will be on going for the EHC and
PP industry
• Very high customer loyalty; many customers
have been buying from us since day one
• Metso’s reputation ranks at the top of all our
competitors
• China-made product is very well received
locally
• Increase services presence
Pulp & Paper • To provide full package automation solution to P&P
customers
• Focus on replacement market and system integration
Power generation • To strengthen power automation in China by
partnership with local company (joint venture)
• Continuous development of environmental solutions, e.g. renewable energy
Other industries • Various penetration for selected segments, e.g.
marine, mineral, O&G, air separation
Services growth • Full-scope life-cycle services
• Process analyses and optimizations
• To build up local services capabilities into service hub
• To develop services together with other Metso units
Localization • To strengthen localization for DCS, QCS, consistency
products to improve cost competitiveness
Automation Business update Business growth initiative
22
© Metso
China’s Paper Industry Development trend
• Long-term trend:
- Production and consumption will grow, but growth rate will be slower
- Competition will be tougher, the economic yield will slow down
- Industry integration and elimination of outdated capacity will speed up
- Paper and board product exports to be suffocated, but fiber – including
virgin fiber and recycled fiber – imports will increase continually
- Policy and management of energy conservation and pollution control will
be strengthened
• 2013 market perspective:
- More restructuring and rebalance, the market confidence and market
prediction is uncertain
- The original competitive advantage edge and growth driver is
weakening, new competitive advantage is under seeking, as a result, the
investment is inactive. Abroad investment is one direction, tissue and
special paper are the hottest grades of new investment
- Packaging grade (mid-size machine ) is still the popular grade for
investment
23
© Metso
12th Five-year plan use of biomass energy by 2015
• The 12th Five-Year Plan issued December 28 by the National Energy Board proposed
annual use of biomass energy by 2015 to be the equivalent of more than 50 million
tons of standard coal, with a 140 billion Yuan budget for new investments. Supported
by the vigorous development of new energy in China, analysts believe that biomass
holds clear market potential.
• The 11th Five-Year Plan’s development goals for biomass power generation total
installed capacity were 5.5 million kilowatts (realized 5.5 million), biogas use of 19
(13) billion m3 p/a, biomass solid pellet use of 1 (0.5) million tons p/a, bio-liquid fuel
use of 200,000 (0.5) tons p/a.
• The 12th Five-Year Plan for biomass is highly ambitious: biomass power installed
capacity of 13 million kilowatts, biogas use of 22 billion m3 p/a, biomass pellet use of
10 million tons, 5 million tons of bio-liquid fuel . The plan also promises to continue to
give a preferential tariff for biomass power generation project support. The central
government to subsidize new biomass energy technology, R&D and industrialization
demonstration projects involving rural life with biomass project construction.
24
© Metso
Strategic opportunities for
Pulp, Paper and Power in China
25
Key opportunities for China (for the whole offering)
1. Rebuild business 2. Service growth 3. POW in China
• Demand for various
grades is changing,
creating some rebuild
opportunities (newsprint
to fine paper etc.)
• Installed base is aging
and machines need
rebuilds for performance
improvement
• Large Metso installed
base providing good
opportunity for service
growth
• Service market is
increasing due to still
increasing production
capacity, aging installed
base and customer focus
on their core operations
• Higher demand for
solutions providing
improved OPEX and
sustainability
•China committed to
reduce carbon footprint in
energy production
•Plan to install additional 5
GW biopower by 2015
and further >20 GW by
2020
•Environmental
requirements (emissions
to air, water and landfill)
tightening also for pulp
mills
Business environment in China
© Metso
Business environment in China
Economic facts
• China’s growth seems to be leveling off at
about 8% Y-o-Y in early 2013
• The easing bias of monetary policy will be gradually
removed, but the policy stance will not be tight and
should be supportive of the government’s 7.5% growth
target. Based on the assessment of the 2013 budget,
fiscal policy will be less expansionary than in 2012
• GDP breakdown (2012 estimate):
- Agriculture 9.7%
- Industry 46.6%
- Services 43.7%
• In terms of purchasing power parity, China, with a
population of over 1.3 billion, is the world’s second-
biggest economy after the United States.
27
Data sources: World Bank, CIA World Factbook, Citi,
Global Economic Outlook
© Metso
-2
0
2
4
6
8
10
12
2008 2009 2010 2011 2012 2013 2014 2015 2016
World
China
Business environment in China
Economic overview
28
Real GDP Growth, % Reforms are being carried out to encourage
private investment, free up the financial
system and promote the global currency
status of the renminbi. The government is
committed to reducing the dependence of
China’s economy on investment spending
and exports, and increasing domestic
consumption
Production of the world's total (2011) cement 58%
coal 45%
iron ore 45%
aluminum 41%
paper & board 25%
bauxite and alumina 17%
silver 16%
gold 14%
virgin woodpulp 5%
%
Data sources: Oxford Economics, USGS, BP, World Coal Association,
Pöyry, IMF, Bloomberg
© Metso
Business environment in China
Growth potential
• The Chinese economy has decelerated since 2010; currently there are signs of growth bottoming
out and a gradual pick-up in momentum. The government has set the GDP growth target at 7.5%
for 2013, and targets a 16% reduction in energy intensity (energy demand per dollar of GDP) by
2015.
• China’s construction market is the largest in the world (total construction spending in 2012 was
USD 1,162 bn, world total was USD 6,161 bn). Construction will continue developing with an
emphasis on interior and western provinces leading to an expected 8.3% CAGR through 2017.
• Overall, China's mining industry value is forecasted to increase from approximately USD 321 bn in
2011 to USD 448 bn by 2017, an annual growth rate of 5.7%. The government, as part of its 5-year
plan, aims at improving efficiency of the mining operations through closures of small mines and
consolidations.
• China continues to gain higher shares of the global paper and board production. In 2011, It
accounted for 25% of global production (98 million tons), and the figure is projected to reach 158
million tons by 2025. Due to tightening environmental regulations, new non-wood pulp lines are
being installed to replace obsolete capacity, putting pressure on investments for new capacity in
the medium term.
29
Data sources: World Bank, CIA World Factbook, IHS Global Construction
Outlook. Xinhua News
© Metso
Summary
Metso in China
• Committed to serving Chinese
customers
• Market leader
• Leading technology and
know-how
• Excellent references
• Established position in China for
more than five decades
• Increasing focus on Asian
markets
30
© Metso
Demerger study proceeding according to plan
31
• On March 25, the Board decided to start a process to study the potential
demerger of Metso
• The plan is to form a new company out of the Pulp, Paper and Power
businesses and to list it on the NASDAQ OMX Helsinki stock exchange
• The Mining and Construction and the Automation businesses would remain
in the current company
• If the go-ahead is given, the process would be completed by the end of
2013
• Next planned milestones:
- Signing and registration of a demerger plan
- EGM in the second half of 2013
© Metso
Aiming to improve strategic focus and
accelerate growth
• The separation would be expected to unleash the full potential and
accelerate growth of the separate businesses
- clearer strategic focus, and improved management focus and ambitions
- leaner, more flexible and agile operations
- enhanced strategic flexibility
- full and independent utilization of the strong market potential
- significantly improved potential for M&A
- higher flexibility to manage capital structure in line with demands of business
models
• The separation would reveal sharpened and more transparent companies
for existing and new investors
- Mining and Construction, and Automation: very strong growth, high share of
services, aggressive growth strategy
- Pulp, Paper and Power: stable growth, high share of services, asset-light, strong
cash flow
• Both companies would continue to be trusted partners for customers,
suppliers and employees
32
© Metso
Pulp, Paper and Power
businesses
• Stable underlying market growth driven
by increasing board and tissue
consumption in emerging markets,
service expansion and biorefining
opportunities
• Global market leader – #1-3 player in all
markets served
• Competitive advantage in emerging
markets, services offering and
technologies
• Share of services close to 40% and large
backlog provide good revenue visibility
and resilience
• Stable growth, increasing profitability and
asset-light operating model will support
good returns on capital employed
Key attributes of the planned new entities
33
Mining and Construction, and
Automation businesses
• Strong underlying market growth in all
markets served: mining, construction and
related automation
• Strong global market position - #1-3 player
in core market segment
• Competitive advantage in global
operations, service offering and
technologies
• Share of services close to 50% and
significant backlog provide good revenue
visibility and resilience
• Significant potential for growth within the
value chain and service markets, both
through organic expansion and M&A
Thank You
Appendix Our facilities and references
Our major facilities in China
© Metso
Mining and Construction in China
Metso Minerals (Tianjin) Co., Ltd.
37
• Operation started in 1999
• Crusher factory expansion in 2009
• Assembly of jaw and cone crushers, screens and
feeders
• Warehouse for spare and wear parts
• Regional Distribution Center (RDC)
Approx. 100 employees
Land area 11,000 m2
Factory 7,500 m2
Office 900 m2
ISO 9001:2000 quality
certificate
© Metso
Mining and Construction in China
Wuhan Repair Factory
• 3 outsourcing repair facilities
in Wuhan, Xi’an, Tianjin
• Repair, renewal and maintenance
of GP, HP, C jaw crushers
• Lease and sale of used crushers
38
© Metso
Automation in China
Metso Technology Center
• State-of-the-art valve factory
• System manufacturing unit
• Engineering unit
• Research and development
functions
• Customer training services
• Sales and services
• Total of 32,000 square meters
• Currently 350 professionals
• Number of employees is
estimated to increase to
650 by the end of 2013
39
© Metso
Automation in China
Nanjing SAC Metso Control System Co., Ltd.
• Joint-venture company between Metso Automation and
Nanjing SAC (33%-67%)
• Operation started in 2011
• maxDNA solution and Nanjing SAC’s digital power plant solution,
services
• Approx. 300 employees
40
© Metso
Pulp, Paper and Power in China
Metso Paper Technology (Shanghai) Co., Ltd.
Location: Xuhang Town, Jiading
District, Shanghai
• Acquired by Metso in 2006
• Part of Metso’s global production network, delivering equipment worldwide
• Operation comprises engineering, foundry, manufacturing etc.
Products: Paper and board
machines, components for fiber
lines, stock preparation and
tissue machine
• Land area: 140,000 m2
• Building area: 43,000 m2
Number of employees:
about 670
41
Certificates:
• ASME /China Pressure
Vessel U Type Certificate
• ISO 9001 quality certificate
• ISO 14001 environmental
certificate
• OHSAS 18001 certificate
© Metso
Pulp, Paper and Power in China
Metso Paper Technology (Xi’an) Co., Ltd.
Location: 4th E Pang Road,
Xi'an, Shaanxi • Established in January 1989
• Over 100 paper or board machines or sections, mainly delivered to Chinese market in past 20 years
• Part of Metso’s global production network, mainly serves the Chinese market but also other markets in Asia-Pacific area
Products: Paper and board
machines, winders and related
components as well as tissue
machines
• Land area: 129,000 m2
• Building area: 49,600 m2
• Number of employees:
about 730
42
Certificates:
• ASME Pressure Vessel U Type
Certificate
• ISO 9001 quality certificate
• ISO 14001 environmental
certificate
• OHSAS 18001 certificate
© Metso
Pulp, Paper and Power in China
Metso Paper (Shanghai) Co., Ltd.
Location: Wai Gao Qiao,
Free Trade Zone, Shanghai
• Established in 2003
• Building area: 5,500 m2
• Employees: about 100
• Products: Screen baskets
manufacturing and service
• Manufactures and assembles
equipment for stock
preparation and recycled fiber,
including pressure screens,
pulp rotor units and cleaners
etc., as well as provides
maintenance service
43
Chroming, surface treatment for
baskets and other products
© Metso
Pulp, Paper and Power in China
Metso Paper (China) Co., Ltd.
Wuxi Service Center
Location:
Wuxi New District, Jiangsu
• Established in 2000
• Extended in 2007
• Service range from spare
parts to comprehensive
process solutions and mill
site services, a modern
workshop for roll services
• Extensive back-up for
pulp and paper deliveries
44
• Land area 19,200 m2
• Workshop 4,600 m2
• Office 1,780 m2
• Employees about 170
© Metso
Pulp, Paper and Power in China
Metso Paper (Guangzhou) Co., Ltd.
Guangzhou Service Center
Location: Yonghe Economic
Zone, Guangzhou
Inaugurated in January 2009
Service range from spare parts
to comprehensive process
solutions and mill site services, a
modern workshop for roll
services
Provides advanced machinery
maintenance and process
development services to the
pulp and paper making industry
in southern China
45
• Land area 17,000 m2
• Workshop 3,600 m2
• Office 500 m2
• Employees about 60
© Metso
Pulp, Paper and Power in China
Metso Paper (China) Co., Ltd., Zibo Branch
Zibo Service Center
Location: Zibo New &
Hi-tech Industrial
Development Zone
• Inauguration in November
2010
Provides advanced
machinery maintenance
and process development
services to the pulp and
paper making industry in
northern China
46
• Land area 20,510 m2
• Workshop 3,600 m2
• Office 500 m2
• Employees about 50
© Metso
Metso Fabrics (Tianjin) Co., Ltd.
Paper machine clothing production
• Located in the Tianjin Airport Free Trade
Zone
• Forming and dryer fabrics for Asia-
Pacific area and Americas
• Premises: 25,000 m2
• In operation since 2008
• Employees: about 110
Filter fabrics production
• Located in the Tianjin Airport Economic
Zone
• Filter fabrics for Asia-Pacific area
• Premises: 4,400 m2
• In operation since 2007, relocated from
Shanghai to Tianjin in 2012
• Employees: about 50
47
© Metso
Pulp, Paper and Power in China
Metso Paper (China) Co., Ltd. Beijing branch
Beijing Branch Office
• Location: Chaoyang District
• Sales office opened in 1996
• Capital projects sales office
and customer relationship
management
• About 35 local persons and
expatriates
48
Our references A solid track record and a trusted brand
name give Metso an edge in a market where
customers expect suppliers to operate
clearly faster than in Europe
© Metso
Metso in China
Results in China
• First deliveries to China by Metso Paper’s predecessors in the 1930s
• One out of every 2.5 pieces of paper and board consumed in China is produced with
Metso machines
• Over 50% of wood pulping capacity in China is produced from Metso’s deliveries
• The cutting-edge Advantage technology for producing specific grades of high-quality
tissue is provided by Metso
• Over 2,000 rock and mineral crushers delivered
• Over 100 grinding mills for minerals and coal delivered
• Over 30 bulk materials handling systems delivered
• Industry leader in flow control devices for the pulp and paper industry, with a 60%
share of the markets served
• Leading supplier of automation solutions (DCS, QCS etc.) to the pulp and paper
industry
• Distributed control systems (DCS) delivered to over 140 power plants in China
50 50
© Metso
References
Rock and minerals processing technology
• Dongguashan Copper Mine:
- SAG grinding mill in 2004
• Wuhan Iron & Steel:
- Iron ore pellet plant, 2006
• Qinhuangdao Coal Terminal:
- railcar dumper systems, 2006
• Jingtang Coal Terminal:
- railcar dumper systems, 2007
• Jiangxi Copper:
- MP800, 2008, primary gyratory crushers
• Taiyuan Iron and Steel
- SAG grinding mill, crushers, VPA, screens
• Chek Lap Kok Airport:
- delivered in 1994
- 1,000 ton/hour, turn-key quarry project
• Three Gorges Dam:
- delivered in 1995-1996
- 4,500 ton/hour quarry for dam construction
- 17 units of big crushers
• Longtan Dam: crushing equipment
- delivered in 2003-2007
- 3,000 ton/hour quarry for dam construction
- 16 units of crushers and screens
• Lafarge Group, Diwei Plant
- delivered in 2012
- a turn-key project
51
Metso’s technology has been applied in numerous mining, quarrying, steel
and power plant, harbor and construction operations in China, including:
© Metso
References
Case: Tisco’s Yuanjiacun Iron Mine
• TISCO - the largest stainless steel
manufacturer in China
• Yuanjiacun iron ore processing
plant in Lan county, Shanxi province
• Expected daily processing capacity
of 22,000-23,000 tons of iron ore
concentrate
• Scope of delivery by Metso
- Gyratory crusher
- SAG grinding mills
- VPAs
- Screens
52
© Metso
References
Case: Three Gorges Dam Project
• Three Gorges Dam - the world's
largest hydropower project at a
crest elevation of 185 m in Hubei
province
• Two of the world’s largest crushing
lines met crucial peak operations,
producing up to a record 11.47
million tons of aggregates annually
• Scope of delivery by Metso:
- Gyratory crushers
- HP cone crushers
- Omnicone crushers
- Barmac VSIs
53
© Metso
References
Case: Huanghua Port
• Huanghua port located in the Bohai
Gulf coastal regions of eastern
China's Hebei province
• The world’s largest quadruple
railcar dumpers in operation
delivered by Metso
• Each of the four lines have an
unloading rate of 8,600 MTPD, or
28 million MTPY
• Total four lines of quadruple railcar
dumper handling capacity over 100
million MTPY
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© Metso
References
Case: SCIP-SSWS Project
• The hazardous waste incinerating
plant for the SCIP-SSWS project at
Shanghai Chemical Industrial Park
• The incineration system by Metso is
designed to decontaminate and
neutralize solids, liquids, gases and
sludge, thus reducing pollution and
emissions
• Two lines, each processing 120
metric tons of material per day
(MTPD); the system generates 14
tons of steam per hour for other use
• The largest and most modern
hazardous waste processing facility
in Asia
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© Metso
References
Automation and control technology (1/2)
Metso has supplied automation and process control solutions for more than
100 industrial processes in China. Customers using our applications include:
• China-Shell Petrochemical Complex: Positioners, Control Valves
• CNPC Dushanzi Petrochemical Company: Positioners, Control Valves
• PetroChina Karamay Petrochemical Company: Positioners, Control Valves
• Praxair Meishan (Nanjing): Positioners, Control Valves
• Sinopec Guangxi Beihai: Positioners, Control Valves
• Sinopec Yangzi Petrochemical: Positioners, Control Valves
• PetroChina Sichuan Petrochemical: Positioners, Control Valves
• Beijing Sanhe Power Plant: Distributed Control System (DCS)
• Jiangxi Fengcheng Power Plant: Distant Control System (DCS)
• Maanshan Power Plant: Distant Control System (DCS)
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© Metso
References
Automation and control technology (2/2)
Metso has supplied automation and process control solutions for more than
100 industrial processes in China. Customers using our applications include:
• Huatai Group: Quality Control System (QCS), Machine Control
• System(MCS), Web Runnability Monitoring (WRM), Headbox Dilution
• System, Process Quality Vision (PQV), Consistency, Control Valve
• Sun Paper: Quality Control System (QCS), Machine Control
• System(MCS), Web Runnability Monitoring (WRM), Headbox Dilution
• System, Process Quality Vision (PQV), Consistency
• Shandong Chenming Paper Holdings Ltd.: Profiler, Distributed Control System (DCS), Process
Quality Vision (PQV), Quality Control System (QCS), Positioners, Control Valve
• Max Fortune Industrial Ltd: Machine Control System(MCS), Quality Control System (QCS),
Distributed Control System (DCS), Drive Control
• Zhejiang Ji'an Paper: Quality Control System (QCS), Machine Control
• System(MCS), Web Runnability Monitoring (WRM), Headbox Dilution
• System, Process Quality Vision (PQV), Consistency
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© Metso
References
Case: Shell Nanhai, China
• CNOOC and SHELL joint venture
in Guangdong, China
• Annual production of 2.3 million tons,
including glycols and polyolefins
Delivered:
• 3,500 valve controllers
• 3,000 rotary control valves
• 1,000 automated and manual valves
• Large installation of rotary control and
segment ball valves
• 150 valve controllers TÜV-approved
safety devices
• Local Automation service personnel
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© Metso
• 2012: Total production of paper, board and tissue in China is about 103 Mtons, a net increase of
3.7%, i.e. 3.7 Mtons, on 2011
• New start-up capacity delivered by Metso in 2012 is about 2.6 Mtons, including 6 paper & board
machines, 3 tissue production lines, and 3 rebuilding projects
• Shanghai Orient Champion Paper,
PM8 35,000t/y various tissue grades
• Xiameng, Xinyang, TM1
60,000 t/y, various tissue grades
• Fujian Hengli, TM2
60,000 t/y, various tissue grades
• Anhui Huatai PM1 Relocation from
Mondi 200,000 t/year, fine paper
• Rebuild projects: APP Ningbo BM2
and BM3, Shouguang Chenming
PM2
• Fujian Liansheng PM6,
OptiConcept M
300,000 t/y, fluting
• Fujian Liansheng PM5, Multilayer
Headbox
350,000 t/y, Testliner
• Sun Paper PM26
550,000 t/y, Carton board, LPB
• Lee & Man PM17
600,000 t/y , White Liner Chip board
• April Xinhui PM11
400,000 t/y, fine paper
China Paper Industry Market
New start-up capacity delivered by Metso in 2012
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© Metso
Highlights in pulp production processes
in China
• Shandong Chenming, world’s highest-yield BCTMP line
• Shandong Bohui, repeat orders for BCTMP line, biggest
mechanical fiber producer in China
• Shandong Chenming, complete wood-handling system,
features a new GentleBarking system
• Shandong Chenming, world’s largest deinking pulping line,
daily production 1,500 tons
• April SSYMB, world’s largest Kraft pulp chemical pulping
plant, Shandong Rizhao 4800 adt/day
• April SSYMB, world’s largest recovery boiler firing 7600
tds/day, the design speed is 6500 tds/day with Euca and 7000
tds/day with Acacia)
• Guizhou Chitianhua, world’s largest bamboo pulping process
• Fujian Qingshan, China’s first pre-hydrolysis dissolving pulp
line
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© Metso
Highlights in paper, board and tissue
production line in China • Fujian Liansheng PM5, state-of-the-art
linerboard machine with world’s first OptiFlo Fourdrinier Layering headbox
• Zhanjiang Chenming PM1, Guangdong, world’s largest and fastest WFU machine, record speed
• HengAn (China) TM10, Advantage DCT 200 tissue machines with ViscoNip shoe press, speed record of 2,000 m/min
• Xiamen Xinyang's new Advantage DCT200 tissue machine record-fast start-up, reached guaranteed production speed within 9 days
• Nine Dragons PM30, fast hybrid former micro-fluting machine, 400,000 tons per year
• Zhejiang Ji’An PM3, world’s fastest coated linerboard machine, equipped with OptiLayer curtain coater, design speed 1,200 m/min
• IP Sun Paper BM26, 550,000 t/a Folding Box
Board/art board machine
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Fujian Liansheng PM6, world’s first
OptiConcept M paper machine.
“It took less than 3 hours in total from having
stock on the machine to get the saleable
paper on the reel.”
© Metso
References
Case: Sun Paper Industry Co., Ltd. (1/2)
• One of the largest paper and board producers in China
• Ordered 7 paper or board making lines for its Yanzhou mill, with a total capacity of 2 million tons per year
• March 23, 2006, International Paper and Shandong Sun Paper Ltd. formed a joint venture for coated board production in Yanzhou City, Shandong Province
• “Our strategy is to become the king of packaging board in China,” said Sun Paper’s Chairman Mr. Li Hongxin. He is also Chairman of China Paper Industry Chamber of Commerce
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PM23, World’s first fine paper machine
with ValZone calender
PM26, carton board machine, ongoing project
© Metso
References
Case: Sun Paper Industry Co., Ltd. (2/2)
• One of the largest paper and board producers in China, and well-known as an innovative enterprise in China’s paper industry
• Installed 7 paper or board production lines, supplied by Metso, at its Yanzhou base, which has a total production capacity of over 2.2 million tons
• In 1998, the first board machine contract between Sun Paper and Metso was signed
• In 2005, International Paper (or “IP”) and Shandong Sun Paper Ltd. formed a joint venture and ordered the largest food package board production line from Metso for the joint venture
• In 2009, Sun Paper started up the high bulk fine-paper production line equipped with ValZone calender, supplied by Metso
• In 2012, IP Sun Paper started up the fourth carton board production line (PM26) supplied by Metso
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PM26, a gigantic carton board machine
with excellent start up: Within three
weeks of start-up, the production speed
exceeded the design capacity, and
within five weeks, the machine reached
its design speed
© Metso
Metso’s financial statements and other financial
information available on Metso’s website at: www.metso.com/investors Metso Corporation - Investor Relations
Fabianinkatu 9 A, P.O. Box 1220,
FIN-00101 Helsinki, Finland
[email protected] Tel. +358 20 484 3117
• Mr. Juha Rouhiainen, VP, Investor Relations
Tel. +358 20 484 3253
• Ms. Marja Mäkinen, Investor Relations Manager
Tel. +358 20 484 3211
• Ms. Emilia Peltola, Financial Communicator
Tel. +358 20 484 3161
• Ms. Tanja Mäkinen, IR Coordinator
Tel. +358 20 484 3117
Follow us at
• www.metso.com/investors
• Annual Report 2012 online: www.metso.com/2012
• LinkedIn: www.linkedin.com/company/metso
• Twitter: www.twitter.com/metsogroup
• Mobile: m.metso.com
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