Metso (MXCYY.PK), a supplier of technology and services to customers in the process industries, Wednesday announced an agreement to sell its shares of its joint venture company Shanghai-Neles Jamesbury Valve Co., Ltd or SNJ to Shanghai Electric International Economic & Trading Co., Ltd or SEIC, which is the other joint venture partner.
SNJ was established 1990 to produce valves and actuators under Jamesbury product name for Chinese markets. Metso and SEIC owned 50 percent each of SNJ, which employs 284 people. The closing of the transaction is estimated to take place during the second quarter.
Good cooperation continues among Metso, SNJ and SEIC as companies have agreed several future cooperation areas, the firm added.
Metso will move its Jamesbury valves production from SNJ to Metso Technology Center in Shanghai. According to the company, the change from a joint-venture based operation to directly controlled Jamesbury business, is in line with its long-term strategy to strengthen its valve production and service capabilities in growing markets.
Chinese market is world's second largest valve market with significant growth potential. After the deal, Metso will be able to independently develop and grow its valves solutions portfolio and offer more comprehensive customer packages.
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