The acquisition enables Metso to expand its offering for the oil and gas and power industries with globe valve technology that plays a key role in most critical processes with extreme pressures and temperatures.
Valstone Inc. is a privately owned globe valve and service specialist company. Valstone has an established customer base in Korean engineering, procurement and construction (EPC) companies and in domestic South Korean petrochemical and power generation industries.
Valstone's globe valves add to Metso's current portfolio of control valves. "This is a strong message for our customers globally. We are in the business with a long-term strategy to continuously improve our technology offering and services to benefit our customers who are facing increasing operating pressures and demand for more advanced applications,'' says Markku Simula, President, Flow Control business line, Metso Automation.
Simula says Metso has ambitious targets to develop its valve business and services. This acquisition is preceded by a series of investments in its global offerings, global presence, and commitment to growth. Supplementing facilities in Brazil and Germany, last year Metso opened a new valve technology center in Finland, and in 2010 opened a new valve facility in Shanghai, China. The compay is currently expanding its valve production premises in the U,S., as well as building a new supply and service center in Vadodara, India.
Stronger position in Asia Pacific
The acquisition of Valstone strengthens Metso's position in the Asia Pacific market area, which is one of the main growth areas for Metso's valve technologies and services. In particular, it provides Metso with a key position to further improve its presence in the domestic South Korean market. Metso further plans to develop partnerships with leading South Korean engineering, procurement and construction (EPC) companies. The region's EPC companies have gained a strong market share in recent years, especially in the growing Middle East market, by winning contracts from major global customers.
"It is a clear benefit for us that we are now close to South Korean and other EPCs in the region. They are important partners, and we can offer them technology that is known and proven for them. This improves our position significantly when these companies choose key suppliers for new projects,'' Markku Simula continues.
Due to Metso's strong position in advanced valves technology, services are a major part of the offering. Customers like Petrobras and Arcelor Mittal have awarded Metso with large service contracts.
Metso Automation - www.metso.com
