Energy and EnvironementalTechnology in China

SEB Enskilda Investor visit in ShanghaiMay 24, 2011

Timi Nieminen, Director, Shanghai PlantEnergy and Environmental Technology

© Metso

Energy and Environmental Technologyin China

• MA SH established on Sept 14,2000 in WGQ Free Trade Zone.

• The number of employees isestimated to increase to 650 by2013

• A state-of-the-art valve factory• System manufacturing unit• Engineering unit• Sales and services• Research and development

functions• Customer training services• Totally 29 500 square meters

SEB Enskilda Investor trip to Shanghai, Energy and Environmental Technology

Energy and EnvironmentalTechnology

2 May 24, 2011

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BEIJING Branch(24 employees)

3

Guangzhou+Huizhoubranch

Energy and Environmental TechnologyChina locations

JINAN Service office(3 employees)

SHANGHAI MA SH(344 employees)

GUANGZHOU+HUIZHOUBranch (12 employees)

CHENGDU Branch(5 employees)

* Personnel: 388 in April, 2011.

SEB Enskilda Investor trip to Shanghai, Energy and Environmental Technology

© Metso

Energy and Environmental TechnologyRoadmap

1970sProject

deliveries toChina

1991Shanghai-Neles

Jamesbury Valve Co.Ltd. JV with ShanghaiElectric Corporation -

25%

1991SAIC agreement

WaiGaoQiao first maxDNAdelivery

1996Purchaseanother

25% sharesof SNJ

1996Neles Controls

Beijingrepresentative

office

1995Valmet Automation Shanghai

representative office

1998Neles Controls Shanghai

representative office

2000Metso Automation (Shanghai) Co., Ltd• Beijing and Shanghai representativeoffices were changed to sales offices• Waigaoqiao operations starts in August

2001Strong growthperiod starts

2002Guangzhousales office

2003 to 2004businessdoubled

2005New SNJfacilities

2006Waigaoqiao’s

plant expansion

2008 MayWaigaoqiao’s new

plant decision

2010 MayWaigaoqiao new

plant startsRBL & POWintegrated in

MASH

4SEB Enskilda Investor trip to Shanghai, Energy and Environmental Technology

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Grand opening ceremony in May 28, 2010

5 May 24, 2011

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Product portfolio: Process Automation System

• Cabinet assembly• QCS assembly• System integration• Engineering• Testing• Project engineering services• Product support• Customer training• Sales and marketing• Service

SEB Enskilda Investor trip to Shanghai, Energy and EnvironmentalTechnology6 May 24, 2011

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Product portfolio: Recycling

Our product offering Include:

- Metal and automobile shredders- Scrap balers- Scrap shears- Crushers

May 24, 2011 SEB Enskilda Investor trip to Shanghai, Energy and Environmental Technology

© Metso

Product portfolio: Power

• Our product offering include:- Boilers

- Evaporators

- Environmental protection systems

- Services

- New products and technologies

8SEB Enskilda Investor trip to Shanghai, Energy and Environmental Technology

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Flow Control Shanghai plant

Location• Shanghai, WaiGaoQiao Free Trade Zone, China

Metso Automation Flow Control business unit, Shanghai plant

Floor spaceTotally 32.000 m2 (factory= 22.000 m2, Office= 10.000 m2)

Headcount2007 94 persons2008 144 persons2009 158 persons2010 187 persons2011 plan 230 persons

Shanghai component factory• Valve & actuator assembly,

machining, inspection, sourcing

Shanghai Supply Center• Top work assembly, spare parts,

repairing service

9 SEB Enskilda Investor trip to Shanghai, Energy and Environmental Technology

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- Body flange machining according to customer needs

- Seat manufacturing

- Ball, segment, disc manufacturing

- Engineered machining

Shanghai plantMachining shop

10 SEB Enskilda Investor trip to Shanghai, Energy and Environmental Technology

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Shanghai PlantAssembly center

• Bare shaft valve assembly- Ball valve 1” – 24”- Segment valve 1” – 16”- Butterfly valves 3” – 40”- Rotary plug ½” – 4”- Finetrol 1” – 10”

• Bare shaft actuator assembly

11 May 24, 2011

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- Top-work assembly and testing of control andon-off valves for- Neles- Jamesbury- Mapag- SNJ- 3rd party products

- Spare parts- Customer acceptance testing

Shanghai PlantSupply center

SEB Enskilda Investor trip to Shanghai, Energy and Environmental Technology

© Metso

Other capabilities

• Product engineering support• Customer order engineering• Product engineering• R&D function• Valve Technology Center

• Project engineering and execution functions• Global sourcing functions• Support functions

• Packing

• Forwarding

• Shipment consolidation

• Customs clearance

13 May 24, 2011

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Offering in products

14

PCS

0

2000

4000

6000

8000

10000

12000

A2006 A2007 A2008 A2009 E2010

ZXFinetrolSegmentButterflyBallsActuators

May 24, 2011

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Shanghai Plant Role

15

• Support China sales• Support Asia Pacific sales• Feed products and components to supply centers and factories.• Localization of components.

= Component Factory= Supply center

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New FactoriesShanghai• Factory area 22 000 m2

• Office area 9 500 m2

• Valve capacity 75 000 pcs• Actuator capacity 30 000 pcs• 380 + 270 people

Helsinki• Factory area 23 000 m2

• Office area 12 300 m2

• Valve capacity 25 000 pcs• Actuator capacity 15 000 pcs• Positioner capacity 75 000• 460 + 300 people

16 May 24, 2011

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