Porsche decides not to renew car assembly contract with Finland's Valmet Automotive Inc

Nordic Business Report, June 26, 2008

NORDIC BUSINESS REPORT-26 June 2008-Porsche decides not to renew car assembly contract with Finland's Valmet Automotive Inc(C)1994-2008 M2 COMMUNICATIONS LTD http://www.m2.com

Finnish engineering and technology group Metso Corporation (OMX Helsinki: MEO1V) said on Thursday (26 June) that the German car maker Porsche has decided not to renew its assembly contract with Metso's car manufacturing unit Valmet Automotive Inc in Uusikaupunki, Finland.

The Uusikaupunki plant assembles Porsche Boxters and Porsche Caymans. Under the current contract, signed in 2004, the assembly will continue until 2012.

Porsche's decision is not expected to have a short-term impact on Valmet Automotive, and according to Ilpo Korhonen, president of Valmet Automotive, the plant has time to sign a new manufacturing contract and to safeguard against production breaks.

Valmet Automotive has 800 employees and reported net sales of EUR85m in 2007.

Metso, headquartered in Helsinki, Finland, provides technology and services to customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries. The group has nearly 27,000 employees in some 50 countries and reported net sales of EUR6bn in 2007.

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