The combination of Metso’s minerals business with technology company Outotec and the creation of an independent listed company for Metso’s flow control business, which was announced last month, is considered a good opportunity to seize further growth opportunities in flow control.
Notably, Metso’s flow control segment, which consists of valves and related services, represented almost a quarter – about 23% – of Metso’s total sales of nearly €3.2-billion in 2018.
The combination of the two companies will create an equipment and services company for the minerals, metals and aggregates industries, as well as establish a global competitor in technology and equipment for the process industries.
The combined minerals processing company will be able to serve its clients better with the highly complementary product portfolio and enlarged service network. Additionally, the new company will be able to create significant shareholder value through revenue and costs synergies, the two companies said in their announcements.
The closing of the alliance is expected to take place only during the second quarter of 2020 – subject to customary regulatory approvals.
The new flow control company Neles, to be established upon closing, is expected to create additional value for Metso clients through its leading position as a flow control solutions provider of valves for the pulp and paper, downstream oil and gas, and other process industries.
Metso’s Neles product family ball valves offer improved process safety and efficiency. The business’ proven technology in design, materials and coatings enhance process reliability in the most demanding shut-off and control applications. For control applications, Neles ball valves provide Q-trim technology for noise attenuation and cavitation prevention.
Despite mining representing only a small section of Metso’s valves business, it caters to all metals and mining clients equally. A flow control related acquisition by Metso has added to its mining valves offering. Metso acquired all the shares of the valve automation division of India-based valves automation firm Rotex Manufacturers and Engineers in November last year.
The acquisition complemented Metso’s actuation and valves automation offering while allowing for a full range of actuators for all major valves markets and a broader offering of limit switches for various applications.
It also introduced new products to Metso’s process valves portfolio for the oil and gas, pulp and paper, mining, water treatment, among others.
“The capabilities and technological solutions from Rotex fit seamlessly into Metso’s offering and strengthen our global valves network,” the company commented.