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Mitsubishi Rayon plans market entry in China
03/04/2003
12:01
Page 13
March 2003
in this decline. Net income also decreased to 27.6 million from 37.5 million in 2001. However, because of continuing cost reduction and capacity optimization programmes, the group’s EBITDA margin increased for the fourth successive year, up slightly to 7.3% from 7.2% the previous year. In view of the overall weakness of the global economy, Andritz described its 2002 operational results as “satisfactory”.
METSO REORGANIZES PAPER AND FIBRE BUSINESS Metso Corp is remodelling the operations of its fibre and paper technology business area, Metso Paper, to strengthen aftermarket services, respond to the changes in the business environment and enhance customer orientation. The changes also aim to further improve Metso Paper’s profitability and competitiveness. Metso Paper’s business environment has changed significantly in the past few years as the investment focus in the pulp and paper industry has shifted to machine rebuilds and process improvements, especially in North America and Europe. The company’s offering will therefore be expanded to cover these areas, together with maintenance services and new installations for the entire lifecycle of the customer’s production processes. Research and technology development will also focus on these aspects. Acquisitions will grow Metso Paper’s aftermarket services operations further. Other planned changes include a widening of the customer base in the board-making business, while Metso Paper’s production will be developed towards assembly and key component manufacturing.
Filtration Industry Analyst
To enhance customer orientation, the company is to be reorganized into six customer business lines – Paper, Board, Tissue, Mechanical, Chemical, and Service – by mid-2003. In related news, Metso Paper GmbH and Metso PaperChem GmbH have combined their operations to create a single source for all needs related to papermaking and technologies concerning chemical and water management systems. The last area covers treatment of white water, effluent and fresh water as well as zero discharge systems.
WEAK MARKETS FORCE LAY-OFFS AT TAMFELT Manufacturer of paper machine clothing products and filter fabrics Tamfelt Corp is experiencing low order backlogs because of recent production cutbacks at paper mills. It is therefore taking measures to adjust its operations to correspond to the lower demand. Following negotiations with employees, the company is introducing temporary layoffs at its forming fabric plant in Juankoski, Finland. The lay-offs will affect all staff at the plant and will take place during 17 April–4 May 2003. The company says the lay-offs will not affect deliveries to customers. Additional temporary lay-offs may be necessary in the autumn but the total duration will not exceed 90 days this year. In addition, the plant’s workforce will be reduced by 10, some of whom are taking retirement. A similar situation is now facing Tamfelt’s Tampere plant, where negotiations with employee representatives are underway. In addition to staff reductions at both plants, the company says it will use other measures to make the operations more efficient and to improve competitiveness.
MITSUBISHI RAYON PLANS MARKET ENTRY IN CHINA Mitsubishi Rayon Co is planning to enter the household water filtration market in China, according to a report in the Nikkei Business Daily. The company has been test marketing its Cleansui waterpurifying system in China since 2001, and opened a showroom in Shanghai in late 2002. Coupled with positive market research, the firm says it has decided to develop treatment membranes suited for the local water and sell cost-competitive products through local production. In partnership with Nankai University in Tianjin, Mitsubishi Rayon is currently testing regional water quality and researching filtration methods. The information gathered will be used to develop a modified filtration membrane and pretreatment carbon particles that absorb foreign matter. The main components of the treatment system, such as the filtration membrane, will be manufactured in Japan, but other parts will be procured locally, reducing costs. An assembly plant will be built in China within two years, and the company plans to market the equipment in urban centres such as Shanghai, Beijing and Tianjin. Local production will cut shipping costs and avoid a 20% tariff. The testmarketed product currently sells for about ¥8000 in China, twice the domestic price, but local production will lower the price by two-thirds. Other modifications may also be introduced to reduce the price for the Chinese market. According to Mitsubishi Rayon, there are 20–30 Chinese companies in the water treatment market, and it plans to price its product competitively. The company is targeting ¥1 billion in sales in three years.
IN BRIEF • Sionix Corp has completed production of the first unit of its modular, transportable water treatment systems. The systems are based on the company’s dissolved air flotation (DAF) technology, which uses air with minimal chemical filter aids, and is said to remove >99.5% of suspended particles in the water stream. The modular system is available either as a complete treatment plant or as individual components. Units are free standing and may be transported to any area suffering catastrophic damage to its water system where they can be operational within 48 hours. • ArvinMeritor Inc is reducing its Light Vehicle Systems (LVS) workforce by around 300 salaried employees worldwide in order to strengthen its competitive position. LVS will also close its Apertures facility in Gordonsville, Tennessee, USA, affecting an additional 275 hourly employees. LVS currently employs 16 000 staff. • MPM Technologies Inc has been delisted from the Nasdaq SmallCap Market, effective 18 February 2003. The company failed to satisfy the requirements of the Nasdaq Listing Qualifications Panel, laid down in August 2002, to demonstrate a closing bid price of at least US$1.00 per share on or before 6 February 2003 and, immediately thereafter, a closing bid price of at least US$1.00/share for a minimum of 10 consecutive trading days. As of 30 September 2002, the company also no longer satisfied the US$2.5 million shareholders’ equity requirement for continued listing. MPM is now trading on the OTC Bulletin Board.
13
NEWS/IN BRIEF
issue.qxd
12:01
Page 13
March 2003
in this decline. Net income also decreased to 27.6 million from 37.5 million in 2001. However, because of continuing cost reduction and capacity optimization programmes, the group’s EBITDA margin increased for the fourth successive year, up slightly to 7.3% from 7.2% the previous year. In view of the overall weakness of the global economy, Andritz described its 2002 operational results as “satisfactory”.
METSO REORGANIZES PAPER AND FIBRE BUSINESS Metso Corp is remodelling the operations of its fibre and paper technology business area, Metso Paper, to strengthen aftermarket services, respond to the changes in the business environment and enhance customer orientation. The changes also aim to further improve Metso Paper’s profitability and competitiveness. Metso Paper’s business environment has changed significantly in the past few years as the investment focus in the pulp and paper industry has shifted to machine rebuilds and process improvements, especially in North America and Europe. The company’s offering will therefore be expanded to cover these areas, together with maintenance services and new installations for the entire lifecycle of the customer’s production processes. Research and technology development will also focus on these aspects. Acquisitions will grow Metso Paper’s aftermarket services operations further. Other planned changes include a widening of the customer base in the board-making business, while Metso Paper’s production will be developed towards assembly and key component manufacturing.
Filtration Industry Analyst
To enhance customer orientation, the company is to be reorganized into six customer business lines – Paper, Board, Tissue, Mechanical, Chemical, and Service – by mid-2003. In related news, Metso Paper GmbH and Metso PaperChem GmbH have combined their operations to create a single source for all needs related to papermaking and technologies concerning chemical and water management systems. The last area covers treatment of white water, effluent and fresh water as well as zero discharge systems.
WEAK MARKETS FORCE LAY-OFFS AT TAMFELT Manufacturer of paper machine clothing products and filter fabrics Tamfelt Corp is experiencing low order backlogs because of recent production cutbacks at paper mills. It is therefore taking measures to adjust its operations to correspond to the lower demand. Following negotiations with employees, the company is introducing temporary layoffs at its forming fabric plant in Juankoski, Finland. The lay-offs will affect all staff at the plant and will take place during 17 April–4 May 2003. The company says the lay-offs will not affect deliveries to customers. Additional temporary lay-offs may be necessary in the autumn but the total duration will not exceed 90 days this year. In addition, the plant’s workforce will be reduced by 10, some of whom are taking retirement. A similar situation is now facing Tamfelt’s Tampere plant, where negotiations with employee representatives are underway. In addition to staff reductions at both plants, the company says it will use other measures to make the operations more efficient and to improve competitiveness.
MITSUBISHI RAYON PLANS MARKET ENTRY IN CHINA Mitsubishi Rayon Co is planning to enter the household water filtration market in China, according to a report in the Nikkei Business Daily. The company has been test marketing its Cleansui waterpurifying system in China since 2001, and opened a showroom in Shanghai in late 2002. Coupled with positive market research, the firm says it has decided to develop treatment membranes suited for the local water and sell cost-competitive products through local production. In partnership with Nankai University in Tianjin, Mitsubishi Rayon is currently testing regional water quality and researching filtration methods. The information gathered will be used to develop a modified filtration membrane and pretreatment carbon particles that absorb foreign matter. The main components of the treatment system, such as the filtration membrane, will be manufactured in Japan, but other parts will be procured locally, reducing costs. An assembly plant will be built in China within two years, and the company plans to market the equipment in urban centres such as Shanghai, Beijing and Tianjin. Local production will cut shipping costs and avoid a 20% tariff. The testmarketed product currently sells for about ¥8000 in China, twice the domestic price, but local production will lower the price by two-thirds. Other modifications may also be introduced to reduce the price for the Chinese market. According to Mitsubishi Rayon, there are 20–30 Chinese companies in the water treatment market, and it plans to price its product competitively. The company is targeting ¥1 billion in sales in three years.
IN BRIEF • Sionix Corp has completed production of the first unit of its modular, transportable water treatment systems. The systems are based on the company’s dissolved air flotation (DAF) technology, which uses air with minimal chemical filter aids, and is said to remove >99.5% of suspended particles in the water stream. The modular system is available either as a complete treatment plant or as individual components. Units are free standing and may be transported to any area suffering catastrophic damage to its water system where they can be operational within 48 hours. • ArvinMeritor Inc is reducing its Light Vehicle Systems (LVS) workforce by around 300 salaried employees worldwide in order to strengthen its competitive position. LVS will also close its Apertures facility in Gordonsville, Tennessee, USA, affecting an additional 275 hourly employees. LVS currently employs 16 000 staff. • MPM Technologies Inc has been delisted from the Nasdaq SmallCap Market, effective 18 February 2003. The company failed to satisfy the requirements of the Nasdaq Listing Qualifications Panel, laid down in August 2002, to demonstrate a closing bid price of at least US$1.00 per share on or before 6 February 2003 and, immediately thereafter, a closing bid price of at least US$1.00/share for a minimum of 10 consecutive trading days. As of 30 September 2002, the company also no longer satisfied the US$2.5 million shareholders’ equity requirement for continued listing. MPM is now trading on the OTC Bulletin Board.
13
NEWS/IN BRIEF
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