Metso has entered into an agreement to sell its shares of its joint venture company Shanghai-Neles Jamesbury Valve Co., Ltd (SNJ) to Shanghai Electric International Economic & Trading Co., Ltd (SEIC), which is the other joint venture partner. At the same time, good cooperation continues between Metso, SNJ and SEIC as companies have agreed to several future cooperation areas.
Metso will move its Jamesbury valves production from SNJ to Metso Technology Center in Shanghai. The change from a joint-venture based operation to directly controlled Jamesbury business is in line with Metso’s 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.
SNJ was established 1990 to produce valves and actuators under Jamesbury product name for Chinese markets. Metso and SEIC owned both 50% of SNJ. SNJ employs currently 284 people. The final closing of the transaction requires regulatory approvals by Chinese authorities and is estimated to take place during the second quarter of 2013.