Tag Archives: Markku Teräsvasara

Metso Outotec wins major IPCC order from Codelco’s Radomiro Tomic mine

Metso Outotec says it has signed an agreement with Codelco in Chile to design and supply a Foresight™ semi-mobile primary gyratory (SMPG) crushing plant for Codelco’s Radomiro Tomic operation.

Equipped with a Superior™ MKIII 60-110 primary gyratory crusher, apron feeder discharge and dust collection, the Foresight™ SMPG meets the highest demands in productivity and sustainability, the company says. It is part of Metso Outotec’s in-pit crush and convey solutions (IPCC) portfolio.

Metso Outotec launched the SMPG in June alongside this IPCC offering and the announcement of a plan to cooperate with FAM on end-to-end solutions for IPCC and tailings management plants to the mining industry.

Back in March, Codelco was granted permission to prolong the life of the existing Phase I hydrometallurgical plant and sulphide mining operations at Radomiro Tomic until 2030. The original project considered the end of the operations associated with this stage of the project in 2022, however, thanks to the incorporation of new mining resources, it will be possible to extend it for another seven years from 2023.

Codelco said at this point that the exploitation of these resources requires the relocation of the current primary crushing of oxides and sulphides, which will require additional investments.

Metso Outotec said the value of the recent order is not disclosed, but it has been booked in the Minerals business September quarter orders received.

Markku Teräsvasara, President, Minerals, said: “We have extended our Planet Positive offering in June of this year, launching our IPCC solutions, combining the right team, technology and services to redefine productivity in this space. We highly appreciate Codelco’s continued trust in us to deliver significant crush and convey infrastructure to meet Codelco’s demanding operational and sustainability goals.”

Eduardo Nilo, President, South America Market Area, added: “We are honoured Codelco has chosen us to deliver this significant project in Radomiro Tomic and extend the fleet of Superior primary gyratory crushers at that site. With more than 1,300 employees and integrated fabrication of wear materials in Chile, we service our fleet of crushers holistically
and look forward to supporting this plant as well.”

Metso Outotec’s integrated modular in-pit crush and convey solutions consist of crushing, conveying and stacking equipment combined with IPCC planning and life cycle services. The offering is designed to ensure the highest productivity, energy efficiency, and maintainability, it says.

Metso Outotec IPCC solutions, with their improved energy efficiency, are part of the company’s Planet Positive portfolio. IPCC operations also reduce haulage related energy consumption and CO2 emissions.

Metso Outotec grinding, flotation and separation equipment destined for Russian Platinum project

Metso Outotec has signed what it says is a landmark contract to deliver all key technology for a new concentrator plant in Norilsk, Russia.

The concentrator is operated by Chernogorskaya mining company, part of the Russian Platinum group.

The delivery is based on Metso Outotec’s proprietary technology and includes key equipment for grinding, flotation and separation. Metso Outotec will also deliver electrification, instrumentation and automation for the concentrator, it says. The contract, which exceeds €100 million ($116 million) in value, has been booked into the Minerals business’ September quarter orders received.

The new concentrator plant is expected to start production in 2023. It will process nickel-copper ore with high palladium and platinum content from the Chernogorsky deposit with an annual capacity of 7 Mt, according to the OEM. Metso Outotec has carried out the basic engineering for the concentrator plant in the earlier stages of the project, it says.

Evgeny Vorobeichik, Managing Director at Russian Platinum, says: “Russian Platinum is aiming for a highly efficient and environmentally friendly production process in the industrial region of Norilsk. The construction of the Chernogorsk GOK is the first stage of this large-scale project, the implementation of which will make our company one of the leaders in the production of palladium and platinum. Use of advanced technical solutions and reliable equipment is an absolute priority. The partnership with Metso Outotec and continuous support from its local operations in Russia are important components to ensuring the success of the project.”

Markku Teräsvasara, President of the Minerals business area at Metso Outotec, added: “Metso Outotec has ample experience with the arctic environment in the Norilsk region as well as with its uniquely rich and demanding ore types. We are delighted to be able to support Chernogorskaya in this greenfield project, where we will be delivering the whole concentrator with the latest technology.”

Metso Outotec invests in Lappeenranta filtration technology centre

Metso Outotec is opening a new laser welding unit, customised for demanding production conditions, at its filtration technology centre in Lappeenranta, Finland.

The new laser welding unit will add to the centre’s manufacturing capacity and enable the production of higher-quality welded structures in a safer and more environmentally friendly manner, the company says. The value of the investment is approximately €1 million ($1.2 million).

Markku Teräsvasara, President of Metso Outotec’s Minerals business, says: “Investing in an efficient laser welding unit is one example of our desire to focus on being an industry leader also in filtration technology.

“In Lappeenranta, we produce several types of filters used in demanding industrial applications. We have systematically developed our capabilities in Lappeenranta over the years. Today, the technology centre for solid-liquid separation, which we opened in 2015, serves customers around the world.”

In addition to Lappeenranta, Metso Outotec provides filtration technology to customers worldwide from its Turku and Suzhou facilities in China, Jussi Venäläinen, Vice President of Metso Outotec’s Filtration Business Line says.

“Our filtration equipment is used, for example, in the mining, chemical and food industries,” he says. “All of them require reliable filtration to ensure high quality of their end products.”

Metso Outotec says its filtration technology centre in Lappeenranta plays an important role in the development of industry innovations. In addition to manufacturing, the centre operates a Dewatering Technology Center, which is focused on solid-liquid separation. It also has continuous cooperation with the Lappeenranta-Lahti University of Technology, among others.

Venäläinen added: “We have a long legacy of filtration expertise – our first filters were made as early as the 1930s in Sala, Sweden. Our selection of filtration technologies is the largest in the field, and their energy, emission and water efficiency is in a league of its own.

“Most of the filtration solutions are part of our Planet Positive range of products. Our filters are safe, easy to use, and quick to maintain, and their high level of automation enables continuous optimisation and remote support. We also provide comprehensive filter maintenance, including lifecycle services.”

Metso Outotec has carried out more than 14,000 filtration tests and delivered more than 5,000 filters for various applications worldwide. Most of the filters are sold under the Larox® product name along with Metso Outotec corporate branding.

In Finland, industrial filter production began in 1977 in Lappeenranta under Larox Oy. In 2009, it continued under Outotec (Filters) Oy, and, after the Metso Minerals and Outotec merger, the filtration technology centre became a part of Metso Outotec. The Lappeenranta site employs around 200 people.

Metso Outotec and FAM to collaborate on IPCC, tailings projects

Metso Outotec and FAM GmbH have signed a global non-exclusive co-operation agreement on the delivery of integrated end-to-end solutions for in-pit crush and convey (IPCC) and tailings management plants to the mining industry.

The combination of the companies’ leading expertise in their respective fields will allow the parties to form the market’s strongest offering for IPCC and tailings management plants, they said.

“Mine electrification, reduction in power and water consumption, as well as de-risking tailings disposal, are common goals for the mining industry and Metso Outotec to improve sustainability,” Metso Outotec said. “State-of-the-art IPCC and tailings management plants cater for these requirements.”

Markku Teräsvasara, President of the Minerals business area at Metso Outotec, said sustainability is a top priority for Metso Outotec.

“In addition to our investments to develop our IPCC and tailings management plant offering, we are pleased to be able to announce our cooperation with FAM,” he said. “This will allow us to meet our customers’ growing demand in such plants, where spreaders or conveyor bridges are required.”

Torsten Gerlach, CEO of FAM, added: “FAM’s leading technology in dry tail stacking systems and spreaders ties well in with Metso Outotec’s hard-rock crushing and minerals processing portfolio. Where end-to-end systems are required, we are glad teaming up with a strong partner.”

Metso Outotec establishes new training program for field service technicians

Metso Outotec has started an integrated competence development platform, the Services Certification Program, looking to standardise the competency of the company’s service employees working on site.

The OEM has an extensive footprint of over 3,000 field services professionals and additional support resources close to customer operations. The certification training program has been designed to validate and develop their employees’ knowledge and skills at servicing their respective products and technologies, it said.

Markku Teräsvasara, President, Services business area, Metso Outotec, said: “Our customers are already expressing strong confidence towards our service experts’ knowledge and technology competences. With the development program, the expertise is officially validated and standardised across the world.

“We have a unique opportunity from being able to combine strong maintenance support with process knowledge. To achieve our ambition of being the preferred services provider in our industry requires us to strive for unified development of industry leading competences based on high performance and safety standards, and resulting in exceptional customer experience.”

The Services Certification Program consists of three distinct and progressive training levels that allow personnel to develop their skills and apply them in on-the-job situations as well as validating existing work experience. All service personnel must achieve a “License to Service” certificate before starting the certification program to ensure a shared understanding of what service means within Metso Outotec and to clarify the standards including safety all are expected to hold themselves to in their work.

The Services Certification Program is designed and managed by the Metso Outotec Training Academy organisation which manages all technical and product trainings globally in the company.

First Ore Mining and Metso Outotec strike thickening plant deal for Pavlovskoye

The First Ore Mining Company (FOMC), part of ARMZ Uranium Holding Co, says it has signed a cooperation agreement with Metso Outotec “underlining the parties’ interest in continuing their strategic partnership in the design, supply, installation, control and commissioning of the thickening plant for the Pavlovskoye field”.

The agreement waas signed by Igor Semenov (right), Executive Director, FOMC JSC, and Markku Teräsvasara (left), Vice President, Metso Outotec.

The Pavlovskoye polymetallic deposit on the Novaya Zemlya archipelago is the largest such deposit in Russia with 47.7 Mt of ore reserves (2.49 Mt f zinc, 549,000 t of lead and 1,194 t of silver), according to First Ore Mining.

The cooperation with Finland’s Outotec (since merged with Metso to make Metso Outotec) emerged more than a year ago on the sidelines of the St. Petersburg International Economic Forum, which gave rise to an initial pact. Since that time, the company’s experts, together with Aker Arctic Technology, have elaborated a detailed draft design for the floating concentrator and set out a preliminary thickening flow chart and main equipment layout, First Ore Mining said.

In September, representatives from Metso Outotec visited the Pavlovskoye field. In the course of the field activities, the company examined the site for the planned thickening plant, tailings pond and infrastructure facilities, First Ore Mining said. It also acknowledged the ore samples were representative and could be used in testing.

The next stage within the partnership will include tests to be carried out at Metso Outotec Research Center in Pori, Finland. Once the work is completed and the final thickening flow chart is developed, Metso Outotec will present the guaranteed performance indicators and design values to ensure the plant’s productivity and the high quality of the concentrates and metal extraction for the ore types studied, FOMC said.

Semenov said: “I am confident that working together with Metso Outotec will significantly improve the thickening indicators for Pavlovskoye ores, which were obtained during the studies in the previous years. As a result, we will produce premium concentrates that are in demand in the global lead and zinc markets.”

Teräsvasara added: “Indeed, it is quite interesting to participate in the development of this unique project for processing minerals in the Russian Arctic. In addition to standard technological and economic matters, harsh weather conditions, lack of infrastructure, and high requirements to environmental safety in the vulnerable Arctic wildlife have made us search for the best available technologies to cover all these points.”

The Pavlovskoye project includes plans to build the northern-most mining and processing plant to produce lead and zinc concentrates, with First Ore Mining as the project operator.

Metso and Outotec establish business areas and leaders ahead of merger completion

With Metso and Outotec having recently cleared one of the final remaining hurdles towards merging the two companies, the future Metso Outotec Board of Directors has laid out the planned company structure and related executive team appointments.

The nominations will become effective after the closing of the partial demerger of Metso and the combination of Metso’s Minerals business and Outotec, which is currently expected to take place on June 30, 2020, subject to receipt of all required regulatory and other approvals, including competition clearances – which the companies made significant headway on recently.

The companies said: “Combined, the future Metso Outotec will be a forerunner in sustainable technologies, end-to-end solutions and services for the minerals processing, aggregates, metals refining and recycling industries globally. The new organisation is designed to leverage the strengths and expertise of both companies.”

Metso Outotec will consist of the following six business areas:

  • Aggregates, providing crushing and screening equipment for the production of aggregates;
  • Minerals, providing equipment and full plant solutions for minerals processing, covering comminution, separation and pumps;
  • Metals, providing processing solutions and equipment for metals refining and chemical processing;
  • Recycling, providing equipment and services for metal and waste recycling;
  • Services, providing spare parts, refurbishments and professional services for mining, metals and aggregates customers; and
  • Consumables, providing a comprehensive offering of wear parts for mining, metals and aggregates processes.

The boards have also made some significant decisions on the key personnel that will lead these business units.

Markku Simula will become President of the Aggregates business unit. Simula currently serves as President, Aggregates Equipment at Metso.

Recently appointed Metso Mining Equipment President, Stephan Kirsch, will become President of the combined Minerals business area.

Jari Ålgars, currently CFO at Outotec, will become President of Metals.

Uffe Hansen, who is currently President of Recycling at Metso, will become President of Recycling at Metso Outotec.

Metso’s Sami Takaluoma will retain his President of the Consumables business area post at the new merged entity.

Markku Teräsvasara, who currently serves as the President and CEO at Outotec, will take on the President, Services and Deputy CEO role at Metso Outotec.

In addition to the business area president appointments, the following function heads and executive team members have been appointed:

  • Eeva Sipilä, CFO and Deputy CEO. Her appointment was announced on July 4, 2019. She currently serves as the CFO and Deputy CEO at Metso;
  • Nina Kiviranta, General Counsel. She currently serves as General Counsel at Outotec;
  • Piia Karhu, Senior Vice President, Business Development. She currently serves as Senior Vice President, Customer Experience at Finnair. She will join the company on July 1, 2020; and
  • Hannele Järvistö, Senior Vice President, Human Resources (interim). She currently serves as Senior Vice President, Human Resources (interim) at Metso. “This appointment is valid until a new position-holder has been selected and will start in this role,” the company said.

All the function heads and executive team members will report to Metso Outotec’s future President and CEO, Pekka Vauramo (pictured), the company said.

Reflecting on these changes, Vauramo said: “Above all, Metso Outotec will be strong in sustainability. Our extensive combined offering for minerals processing, from equipment to a broad range of services, will help our customers improve their profitability and lower their operating costs and risks, while at the same time reduce the consumption of energy and water.

“We at Metso Outotec understand our customer’s world and the daily challenges they face. Together, we will partner for positive change.”

Outotec refines minerals and metals focus with planned divestments

Outotec has taken a strategic decision to divest three of its businesses in the Metals, Energy & Water segment’s portfolio as it focuses on its core technologies in minerals processing and metals refining.

These businesses relate to aluminium, waste-to-energy and sludge incineration, the company said.

This news comes as Metso is going through the process of gaining approval for the acquisition of Outotec, a deal that will create a mineral processing giant.

Outotec said the aluminium business to be divested includes the green anode plant, rod shop (an example, pictured) and certain cast-house technologies as well as related service operations; while the waste-to-energy business to be divested comprises of biomass, wood waste and various other fuel plants including related service operations.

The last business – the sludge incineration segment – comprises delivery of plants for treatment of municipal and industrial sludge and related service operations.

In total, around 250 experts are working in these three businesses, which will be affected by these moves. In the company’s 2019 financial results, the businesses to be divested will be classified as discontinued operations, Outoect said.

For the financial year 2019, the intended actions will lower the expected sales by around €50 million ($55.5 million) but increase the adjusted EBIT by some €40 million, the company said.

Outotec’s CEO, Markku Teräsvasara, said: “Pursuing these strategic actions will enable Outotec to better focus on its core technologies in minerals processing and metals refining. We, of course, remain committed to serving our energy and aluminium customers until these divestments have been completed.”

Paul Sohlberg becomes Outotec’s new head of minerals processing

Outotec has appointed Paul Sohlberg as interim Executive Vice President of its Minerals Processing business unit following Kimmo Kontola’s decision to leave the company.

The position, which also sees him join the executive board, is temporary until the expected closing of the Outotec and Metso Minerals combination, which is expected to complete in the June quarter.

Paul Sohlberg joined Outotec in 2011 and, since 2014, has worked as the President of Market Area North & Central America.

Outotec’s President and CEO, Markku Teräsvasara, said Sohlberg has “versatile experience” in business leadership roles at Outotec and Elektrobit.

“Under Paul’s leadership, we have seen strong development in North and Central America. I warmly welcome Paul to our executive board, where his task will be to further strengthen and develop our growing minerals processing business.

“At the same time, I want to thank Kimmo for his long career and contributions in developing Outotec’s minerals processing business and wish him all the best in his next career chapter.”

Metso and Outotec to join together in ‘industry-shaping combination’

The boards of Metso and Outotec have unanimously approved a demerger plan and a combination agreement to combine Metso’s Minerals business with Outotec.

As part of the deal, Metso Flow Control, which was recently split off from the Metso Minerals division, will become a pure-play listed entity under the name of Neles.

The combination of Metso Minerals and Outotec is highly complementary and will create a unique company in the industry, according to the two companies. “Metso Outotec will leverage the strengths of both companies, including technology and R&D, product and process excellence, scale and global service offering footprint. The combination will deliver significant benefits to all stakeholders,” they said.

The combined company, Metso Outotec Corp, had illustrative 2018 combined sales and adjusted EBITA of €3.9 billion ($4.4 billion) and €369 million (excluding the impact of the €110 million provision recorded in relation to the ilmenite smelter project as described in Outotec’s 2018 financial statements).

This represents an illustrative combined adjusted EBITA margin of 9.6% in 2018, excluding the benefit of the expected synergies, and also Metso’s recently announced acquisition of McCloskey International. Including McCloskey, illustrative 2018 combined sales would have been approximately €4.2 billion.

Metso Minerals and Outotec expect to achieve run-rate annual pre-tax cost synergies of at least €100 million, and run-rate annual revenue synergies of at least €150 million, delivering significant value for shareholders, they said.

Upon completion of the agreed demerger, Metso shareholders will receive 4.3 newly-issued shares in Outotec for each share owned in Metso on the record date. This implies Metso shareholders would own around 78% of the shares and votes of Metso Outotec, and Outotec shareholders would own the remaining 22% of the shares and votes of Metso Outotec. In addition, Metso shareholders will retain their current shares in Metso, which will be renamed Neles.

The current CEO of Metso, Pekka Vauramo, will become Metso Outotec’s CEO, and the current CEO of Outotec, Markku Teräsvasara, will become the Deputy CEO of Metso Outotec. Eeva Sipilä will become the CFO and Deputy CEO of Metso Outotec.

The board of Metso Outotec will include board members from both companies. It is proposed that Metso Outotec’s Chairman will be Mikael Lilius and that the Vice Chairman will be Matti Alahuhta.

Shareholders representing 33.6% of the shares and votes of Metso and shareholders representing 24.8% of the shares and votes of Outotec have irrevocably undertaken to vote in favour of the transaction, which the companies hope will close in the June quarter of 2020.

Metso Outotec’s headquarters will be in Helsinki, Finland and it will maintain its listing on Nasdaq Helsinki, the companies said.

Outotec Chairman, Matti Alahuhta, called the deal an “industry-shaping combination” that joins two “uniquely complementary companies”, while Metso Chairman, Mikael Lilius, said the deal represented a “transformational combination of two great companies” and the simultaneous creation of an “independent leader in flow control”.

Outotec CEO, Markku Teräsvasara, said: “The combination of Outotec and Metso marks an important milestone in each company’s history and in Outotec’s strategic development. I am excited about the many benefits that the combination will deliver for customers, employees and ultimately shareholders, with the larger scale and combined strengths of both companies. Outotec has a highly compelling portfolio of technologies and capabilities that will be a key catalyst for unlocking many of these benefits. I look forward to building a great new company together with the Outotec and Metso Minerals employees, as part of Metso Outotec.”

And, Metso CEO, Pekka Vauramo, said: “This is a unique opportunity to create value for our customers, employees and partners globally. Metso Outotec will have capabilities that will enable us to drive sustainable growth, while providing our customers with high-quality technology, equipment and services that will ultimately improve their businesses. We will have an extensive global presence, complementary offering, strong services and a large installed base. We also have excellent people – the best talent in the industry. I am therefore eagerly waiting to join with Outotec’s personnel to begin our exciting journey together.”

The combination of the two companies is, according to Metso and Outotec, expected to deliver a range of strategic, commercial, operational and financial benefits:

  • A leading company with a wide presence across the value chain allowing Metso Outotec to provide an end-to-end offering in minerals processing;
  • Enlarged installed base coupled with advanced service offering providing opportunities to unlock significant benefits;
  • Leadership in sustainable technology across all businesses;
  • Breadth across verticals (minerals/metals/aggregates), geography and application provide enhanced performance;
  • Significant revenue and cost synergies, and;
  • Solid capital structure and attractive dividend policy.

The companies said: “The combination of Metso Minerals and Outotec will create a leading company in process technology, equipment and services serving the minerals, metals and aggregates industries. Metso Outotec will also have expertise in specialist areas, such as recycling and energy solutions.”

Metso Outotec will have a presence across the full minerals processing and metals refining value chain, with a “differentiated ability to deliver end-to-end solutions across the whole process from crushing to end products”, they said. The combined company will own a broad portfolio of leading technologies in, for example, comminution, beneficiation and metals refining, as well as a market leading aggregates business and global strength in services.

On a combined basis, Metso Minerals and Outotec had 15,630 employees globally, as of March 31, 2019, with close to 100 nationalities represented.

Completion of the transaction is subject to approval by a majority of two-thirds of votes cast and shares represented at the respective EGMs of Metso and Outotec, regulatory approvals, including competition clearances, and other conditions.

As a result of the combination of Metso Minerals and Outotec, Metso will be renamed as Neles and will become a globally recognised flow control company with highly attractive market positions.

Neles, which will continue to be listed on Nasdaq Helsinki, is expected to create additional value for Metso’s shareholders as a separate entity through:

  • Leading position as a flow control solution provider with market leadership across pulp & paper valves and down stream oil & gas control valves;
  • Continued outperformance of market growth with best-in-class profitability and proven resilience through the cycle;
  • Diversified sales mix both by region and industry;
  • A fully focused, dedicated management to deliver shareholder value and leverage further growth opportunities;
  • Solid balance sheet and financial position, and;
  • Crystallisation of attractive sector trading multiples.

At year-end 2018, Neles had illustrative combined net cash of €72 million. To support the capital structure of Neles, Metso has entered into a €150 million term loan facility agreement, which may be used for the repayment and replacement of Metso’s credit facilities and other liabilities that benefit the flow control business and are to remain with Neles post completion. Prior to the completion, Metso is also expected to enter into a new revolving credit facility of €200 million to be used for the general corporate purposes of Neles.

Olli Isotalo, who was named the new CEO of the Flow Control division last month, will become Neles’ CEO.