Metso to supply a fiber line to ITC Bhadrachalam, India

Published June 12, 2006 10.00.00 +2 GMT

Metso Paper will supply a new fiber line to an Indian customer, ITC Ltd. for company's pulp mill expansion project in Bhadrachalam, in the state of Andhra Pradesh. The pulp mill expansion project forms a part of ITC's plans to increase its paper production. The value of the order is close to EUR 25 million and the line is scheduled to start-up in July 2007.

Metso Paper's scope of delivery covers all the main process machinery, pressure vessels, field instruments, basic engineering and supervision services from cooking, up to ready bleached pulp. The selected technology features a modern environmentally sound process, utilizing oxygen delignification and ozone bleaching technologies. After the expansion work has been completed, the daily production of the pulp mill will be 750 bone dry tonnes (BDT) fully bleached pulp of eucalyptus and Subabul as raw materials.

In addition, Metso Paper will also supply an ozone bleaching stage for the existing line to minimize the environmental impact of the mill. The new cooking system is going to produce pulp for both fiber lines and is designed for a total daily production of 800 tonnes. The special feature of the process is that it enables simultaneous cooking of two different wood species for the need of the two fiber lines.

ITC is one of India's foremost private sector companies with a turnover of USD 3 billion. ITC Bhadrachalam Paperboards and Specialty Papers Division is the largest manufacturer of Packaging and Graphic Boards in South Asia.

Metso is a global engineering and technology corporation with 2005 net sales of approximately EUR 4.2 billion. Its 22 000 employees in more than 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries. www.metso.com

For further information, please contact: N. K. Jain, Vice President, Fiber Business Line, Metso Paper, India, tel. +91 124 235 1541 Yngve Lundahl, Regional Sales Manager, Fiber Business Line, Metso Paper, Sweden, tel. +46 60 16 51 77 Johanna Sintonen, Vice President, Investor Relations, Metso Corporation, tel. +358 20 484 3253