Wärtsilä's and Metso's joint venture cleared by regulatory authorities
Wärtsilä and Metso have received the necessary regulatory approvals from the European Commission to close the joint venture combining Metso's Heat & Power business and Wärtsilä's Biopower business. The transaction will be closed on January 1, 2009, according to the agreement between Wärtsilä and Metso.
The name of the joint venture will be MW Power Oy. Jorma Lehtoviita, currently Vice President of Metso's Heat & Power business, is appointed Managing Director. The current Managing Director of Wärtsilä Biopower Oy, Ilkka Heikkilä, is appointed General Manager, Finance and Administration.
Metso will own 60 % and Wärtsilä 40 % of MW Power Oy. It is estimated that the consolidated annual pro forma net sales of the company will be approximately EUR 130 million in 2008. The technologies of the two companies are complementary. Metso's fluidized bed combustion technology and Wärtsilä's grate technology enable a solutions portfolio for a wide range of fuels in power and heating plants.
Wärtsilä and Metso announced in September 2008 that they had signed a contract to form a joint venture. The company will be one of Europe's leading providers of medium- and small-scale power and heating plants with a focus on renewable fuel solutions.
For more information: WWW.WARTSILA.COM