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Sandvik agrees to acquire Metso Powdermet AB

RP news wires, Noria Corporation
Sandvik has reached an agreement with the Finnish Metso Oy Group covering the acquisition of Metso Powdermet AB. The acquisition is expected to be completed prior to the end of 2006.

Metso Powdermet AB is a world leader in powder metallurgy components manufactured through so-called hot isostatic pressing (HIP technology) into near net shape. The company develops and delivers customized components in high-alloyed steels as well as nickel and cobalt based alloys. Customers today are primarily in the offshore and energy sectors. Metso Powdermet posted sales of SEK 90 M during the past fiscal year, with an operating margin of 18 percent, and have 13 employees. The company has operations in Surahammar, Sweden. Sandvik Materials Technologys previous operations in the field of powder technology include production of powder-based billets at its plant in Surahammar and high-alloy powder in Wales, United Kingdom.

Through acquisition of Metso Powdermet AB, Sandvik Materials Technology will strengthen its position in the strategically important oil and gas, energy and medical-technology segments.

Today, Sandvik Materials Technology has leading-edge expertise in materials technology and powder production. The acquisition provides access to the complementary expertise required to capture a significant position with regard to applications development and component production of powder-based products pressed to near net shape, says Peter Gossas, president of Sandvik Materials Technology.

Sandvik is a global industrial group with advanced products and world-leading positions in selected areas tools for metal-cutting, machinery and tools for rock excavation, stainless materials, special alloys, metallic and ceramic resistance materials as well as process systems and sorting systems. The group has 39,000 employees in 130 countries, with annual sales of approximately SEK 63,000 M.

Sandvik Materials Technology is a business area within the Sandvik Group and a world-leading manufacturer of advanced alloys and ceramic materials. The business area delivers innovative products and system solutions to a broad range of industries with high demands on security, performance and productivity. Annual sales are about SEK 17,000 M with 8,400 employees. The product areas comprises Tube, Strip, Wire, Kanthal and Process Systems.

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