“This acquisition strengthens significantly our wood handling technology offering and services presence in South America and complements our product portfolio, capacity, and capability in terms of global presence. It makes me extremely happy that one of our flagship references, CMPC Guaíba II pulp mill is now a full Valmet mill, as Demuth had delivered the wood handling and Valmet all the other key process islands and automation,” explains Juha-Matti Liukkonen, Director for the global Woodhandling technology unit.
Demuth is now part of Valmet – strengthening the wood handling technology and services offering
Aug 2, 2024
On August 1, 2024 Valmet completed the acquisition of Demuth following the agreement that was announced in December, 2023.
Demuth started operations on June 1st, 1981 and has become one of the main equipment suppliers for the wood handling to the pulp industry. The company has two manufacturing locations in Brazil in the state of Rio Grande do Sul, the first one being a 10.000 square meter buildings located in Novo Hamburgo city and, the second, a newer one, a 33.000 square meter complex in Portão city. In addition to wood handling equipment the company offers steel structures for various industries.
Demuth has two production units in Southern Brazil in the State of Rio Grande do Sul
The acquisition is in line with Valmet’s strategy to develop and supply competitive and reliable process technologies, services and automation to pulp, paper and energy customers. This acquisition significantly strengthens Valmet’s wood handling technology offering and services presence in South America.
“The acquisition was completed as planned after the approval of the competition authorities’ review. We are very happy to welcome almost 400 new colleagues from Demuth to join our Valmet South America team. With stronger local presence in Brazil and with further improved capabilities to deliver new wood handling equipment, spare parts, and field services, we are able to serve our customers even better and help to take their performance forward,” says Celso Tacla, Area President, South America, Valmet.
“I am very proud of how Demuth has grown from a family company into a major wood handling supplier, reaching a global supply standard. It has been a 43-year story of great courage and success. Now by joining Valmet, a new era is beginning. With this strengthened offering, as well as a production and service presence in Brazil, Valmet will be a much stronger player in the wood handling business by bringing together the best products and solutions for the market. I will be eagerly working towards these common goals,” says Erik Demuth, who continues to support the new Valmet Wood Handling Operations South America unit.
New unit as part of South America area with close ties to global Woodhandling technology unit
The acquired business becomes a part of Valmet’s South America Area organization, and the offering will be an integral part of Pulp and energy business line’s Woodhandling technology unit.
“South America is an important growth market for Valmet’s pulp business. There are several new greenfield pulp mills being planned to be built in Brazil and several of the existing mills will be modernized in the coming years, in Brazil and other countries in South America. With expanded wood handling offering and equipment manufacturing capabilities, we can strengthen our position in these projects. Our whole organization is looking forward to very close cooperation with our new colleagues,” says Sami Riekkola, Business Line President, Pulp and Energy, Valmet.
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