MetsoGlobal valve manufacturer, Metso, has entered into an agreement to sell its shares of 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. The move is part of a change of focus for Metso aimed at expanding the presence of its valve solutions in China.
Metso will move its Jamesbury valves production from SNJ to Metso Technology Center in Shanghai. The company says 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. According to Metso, the Chinese market is the world's second largest valve market with significant growth potential. After the transaction, Metso says it will be able to independently develop and grow its valves solutions portfolio and offer more comprehensive customer packages.
SNJ was established 1990 to produce valves and actuators under the Jamesbury product name for Chinese markets. Metso and SEIC owned both 50 percent of SNJ. SNJ currently employs 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.
Metso's flow control solutions include control valves, automated on/off and emergency shut-down valves, as well as smart positioners and condition monitoring. Metso's product brands are Neles, Jamesbury and Mapag.