The new company formed by the merger of the Valmet and Rauma Corporations has been called the Metso Corporation.

The announcement follows the news that the Board of Directors of both Valmet and Rauma have approved the proposed merger between the two companies. The European Commission, the Bureau of Competition of the Federal Trade Commission, U.S.; and the Bureau of Competition Policy, Canada; also have announced that they will not oppose the merger of Valmet and Rauma.

It is proposed that Metso Corporation be split into three business areas: fibre and paper processing, automation and controls and machinery. The two major operating units within the machinery business area are: Nordberg (rock crushing systems) and Timberjack (forestry machines). Both these former Rauma business groups will retain their existing company names. Their existing product names will also be unaffected.

Nordberg Group President and CEO, Olli Vaartimo, believes the merger of Valmet and Rauma: “will bring important synergies that will help strengthen the new company’s market position in all of its business areas including Nordberg, and create added value for customers and shareholders.”

“Nordberg Group is a large and profitable part of Rauma Corporation, and of the new company, Metso Corporation,” Vaartimo added. “It also has strong growth potential and growth will be one of the key targets for the new company.”

Vaartimo believes that Nordberg’s potential will be much easier to realize as part of the Metso Corporation. He said that one of the key areas in which Nordberg will benefit from being part of a larger corporation is research and development.

In 1998 Valmet and Rauma had combined net sales of more than $4.14 billion and an operating profit of $276 million. In the same period Nordberg contributed 13 percent to the combined net sales of Valmet and Rauma and 14 percent of the operating profit.