The new owner will continue the foundry operations under the TEVO-Lokomo name at the foundry's current premises in Tampere.
All 128 people currently employed by the foundry will continue with their current employment contracts. Completion of the divestment is expected to occur on March 1, 2015. The value of the transaction will not be disclosed.
"Operations at the Tampere foundry are of good quality, and it fits well to our strategy to serve both TEVO's and Lokomo's customers with a wider product offering for example in the offshore industry. TEVO has earlier this year started a unique development project related to arctic propellers together with Aker Arctic and VTT. The steel foundry knowhow supports this project. The foundry operations together with our propeller manufacturing unit in Turenki, Finland make TEVO an internationally recognized player in the industry", says TEVO's managing director Teuvo Joensuu.
"I am happy that the foundry operations will continue in Tampere. Divestment offers a great starting point for developing the foundry operations as part of TEVO", says Juha Silvennoinen, President, Services business area, Metso.
In addition to the Tampere foundry, Metso has currently five foundries and an extensive network of external casting suppliers serving the mining and aggregates industries. Our foundries are located in Ahmedabad, India; Isithebe, South Africa; Prerov, Czech Republic; Quzhou, China and Sorocaba, Brazil.
TEVO is a family-owned business originally from Raahe in Western Finland, and has been in business for over 40 years. TEVO is an internationally operating heavy-duty machine engineering workshop, whose business has expanded from steel and paper industries to offshore and shipbuilding industries. TEVO specializes in complex steel structures and specialty welding. Own product offering consists of bronze propellers for sea-going vessels and specialty rolls for paper industry as examples. After the completion of the acquisition, TEVO will employ approximately 260 professionals at its Raahe, Turenki ja Tampere sites in Finland. Over 50% of TEVO's annual net sales of about EUR 50 million come from exports. TEVO is a financially solid and trustworthy partner. tevo.fi
Metso (metso.com) is a leading process performance provider, with customers in the mining, oil and gas, and aggregates industries. Metso's cutting-edge services and solutions improve availability and reliability in minerals processing and flow control, providing sustainable process and profit improvements. Metso is listed on the NASDAQ OMX Helsinki, Finland. In 2013, Metso's net sales totaled EUR 3.8 billion. Metso employs approximately 16,000 industry experts in 50 countries. Expect results.
Pirjo Virtanen, Foundry manager, Tampere foundry
T: +358 20 484 4237 - E: pirjo.virtanen[.]metso.com.
Teuvo Joensuu, Managing Director, TEVO limited company
Jussi Ollila, Vice President, Global Communications, Metso Corporation
T: +358 20 484 3212 - E: jussi.ollila[.]metso.com.