Mitsubishi Heavy Industries (MHI) is to transfer its pulp and paper machinery business to Metso Paper of Finland and its Japanese subsidiary, Metso Paper Japan.
The transfer, which also includes MHI’s machine designs and intellectual property rights, is expected to take place at the end of March this year.
MHI said that it chose to transfer its business to Metso Paper for two main reasons.
First, MHI and Metso Paper jointly own the patents and intellectual property rights to paper machinery technology of the former Beloit Corporation of the US. Secondly, Metso Paper has numerous production and service centres worldwide and can provide the after-sales services for the machinery that MHI has already delivered to its customers.
For MHI machinery still under warranty at customer sites, including machinery yet to be delivered or in the process of being installed, MHI will assume responsibility until the expiration date of the warranty.
The deal between the two companies is still subject to regulatory approval.