Displaying items by tag: Vaahto Group

Vaahto Paper Technology Ltd, a company within the Vaahto Group, has on 16 January 2013 entered into an initial agreement for the sale of the Vaahto Paper Technology group's Projects business and the spare part and small projects businesses belonging to its Services business to a company to be incorporated by Gebr. Bellmer GmbH Maschinenfabrik of Germany. The parties will seek to negotiate the final terms of the transaction so that it can be completed no later than on 27 March 2013. 

Vaahto Group and Bellmer GmbH have in connection with negotiating the transaction also negotiated a co-operation agreement, to be entered into by the Projects business and Vaahto Paper Technology's Service business. The Vaahto Service business unit produces technological solutions for maintenance services in the paper, board and pulp industries. 

The Projects business has accumulated annual revenues of EUR 17–25 million during the last years, with low profitability. The business unit employs approximately 60 persons in Hollola and 15 persons in Tampere, respectively. The transaction would be realised with a view of seeking to improve the cash flow of the Vaahto Group for the financial year 2013 as well as to implement the strategy outlined by the Board of Directors. 

Gebr. Bellmer GmbH Maschinenfabrik is a German family-owned company that produces equipment and services for the paper, board and pulp industries. With this transaction Bellmer continues to strengthen their market presence as well as their product portfolio. Vaahto’s paper machinery business is concentrated on Finland, Sweden, Russia and China. By establishing a strong presence in Finland and Sweden and increasing resources in Russia and China Bellmer forms a good platform for further growth. 

The turnover of Vaahto Group for 1 September 2011–31 May 2012 was 38.6 MEUR (compared with 40.4 MEUR for the corresponding period in the previous financial year), with an operating loss of 4.4 MEUR (compared with an operating loss of 0.6 MEUR). The turnover fell by 4.5% from the reference period level, causing the operating result to remain markedly weaker than in the reference period. The Group’s order book amounted to 17.9 MEUR on 31 May 2012, whereas it was 22.4 MEUR at the start of the period under review on 1 September 2011. 

Vaahto Group Plc Oyj’s extraordinary general meeting on 19 June 2012 appointed Sami Alatalo as a new Board member. The general meeting also approved an amendment to the statutes, based on which the company’s normal financial year was changed to 1 January–31 December. Consequently, the duration of the current financial year will be sixteen (16) months (1 September 2011–31 December 2012). 

Vaahto Paper Technology 

The turnover of the Vaahto Paper Technology division for 1 September 2011–31 May 2012 was 24.7 MEUR (28.8 MEUR), and its operating loss was 3.5 MEUR (operating profit 0.4 MEUR). The turnover fell by 14.5% from the reference period level, causing the result to remain weaker than that of the reference period. The main reason for the Vaahto Paper Technology division’s loss-making result was the weak profitability of the projects that were entered as income for the period under review. 

In the period under review, the most significant new order in the project business was the modernisation of the pulp dryer at the Södra Cell Mönsterås pulp mill. There have been clear signs that the market situation of the project business is becoming more intense. The market situation of the service business has continued to be fairly good for the time being. 

In the period under review, the organisation and business structure of the Vaahto Paper Technology division was clarified. Measures were taken to strengthen particularly the sales and product development operations, while cost-effectiveness was improved by combining overlapping operations. 

The company has made strategic definitions to focus on the service business in the Vaahto Paper Technology division, with a goal of becoming a strong Nordic service organisation. A new intensification programme has been started in the service business, the effects of which are expected to be seen in the final months of the extended financial year. 

Vaahto Process Technology 
The turnover of the Vaahto Process Technology division for 1 September 2011–31 May 2012 was 14.0 MEUR (11.6 MEUR), and its operating loss was 0.9 MEUR (operating loss 1.0 MEUR). The turnover increased by 20.9% compared to the reference period, and the result was slightly better than that of the reference period. The result was weakened by the low profitability of the delivery projects in the vessel business during the period under review. 

The market situation of the Vaahto Process Technology division has remained fairly good and the division’s order book grew during the period under review. The division’s agitator business is seen as one of the Group’s strategic areas of focus. 

Directed share issue and share exchange agreement The company’s Board of Directors decided on 19 April 2012 to issue 600,000 new shares and to deviate from the shareholders’ subscription privilege, issuing the shares to a group of selected investors instead. Based on the discussions with the investors, the subscription price was agreed at 3.50 EUR per share, thus the total subscription price amounted to 2,100,000 EUR. 

The company’s Board also decided to approve a share exchange agreement, which was signed on 19 April 2012, concerning the company’s subsidiary AP-Tela Oy, as well as a directed share issue based on the agreement in order to carry out a share exchange for the minority shareholders of AP-Tela Oy. Following the share exchange, the Group’s share in AP-Tela Oy is 100%. 

Estimate for the financial year 1 September 2011–31 December 2012 
There have been worrying trends in the development of the international financial situation and the market situation of Vaahto Group’s main branches of industry has continued on its difficult course. The operating result of Vaahto Group’s extended financial year is estimated to be loss-making and weaker than what was previously forecast for the twelve (12) month financial year. In order to secure the company’s financial position, discussions are underway to arrange long-term financing. In order to revive the Group, the Board is also reviewing opportunities to make structural arrangements. Due to a market situation that is difficult to predict, there remains significant uncertainty over the estimation of the result for the financial year. 

Interim report for 1 September 2011–31 August 2012 
The extraordinary general meeting of Vaahto Group Plc Oyj on 19 June 2012 decided that the company’s normal financial year would be changed to 1 January–31 December. The company’s current financial year 1 September 2011–31 August 2012 is therefore extended to sixteen (16) months, ending on 31 December 2012. Vaahto Group will release its interim report for twelve months on 10 October 2012.

Vaahto Pulp & Paper Machinery –division of Vaahto Group will in future act as Vaahto Paper Technology. Better than the old one, the new name will describe the business of the division, which delivers services and technology solutions for paper and board industry. Vaahto Projects and Vaahto Service –units will still belong to the division.Vaahto Projects designs and manufactures production lines, machines and equipment as well as their components to the paper, pulp and board industry. Vaahto Service produces technology solutions for maintenance and spare parts services of paper, board and pulp industry.

M.Sc. (Tech.) Kalle Rasinmäki has been appointed to Vice President, Sales and Marketing of Vaahto Paper Technology since December 1, 2011. Mr. Rasinmäki will enter to service of Vaahto from Pöyry.

Vaahto Process Machinery –division of Vaahto Group will in future act as Vaahto Process Technology. The operations of the division are divided into two business areas: Stelzer Mixing Technology, specialized into the mixing technology and Japrotek Vessels, focusing the tanks and pressure vessels.

Vaahto Pulp & Paper Machinery has received an important order from Sörda Cell Mönsterås mill in Sweden. The pulp dryer TM5 of the chemical pulp mill will be revamped for higher production output and better runability. The machine produces both softwood pulp and hardwood pulp.

Vaahto´s supplies include water removal elements, steam-box, lead rolls and suction roll technology as well a major extension of the vacuum systems of the line. Installation, start-up and training services are essential parts of the delivery.

The wire width of the machine is 4650 mm and design speed 250 m/min. The maximum daily output of the dryer can reach 950 tons.

Equipment will be manufactured in Vaahto´s workshops in Hollola and Tampere in Finland. The start-up is scheduled for October 2012. The value of this kind of order amounts usually between 5 and 7 million euros.

Vaahto Pulp & Paper Machinery is part of Vaahto Group, which is a globally operating high technology company serving process industry in the fields of pulp and paper machinery and process machinery.

Vaahto Pulp & Paper Machinery has received an important order from Stora Enso Imatra mill in Finland. The pulp dryer of the chemical pulp mill will be revamped for higher production output and better runability. Imatra pulp mill produces both softwood pulp and hardwood pulp, and additionally the pulp dryer is used for CTMP production.

Vaahto´s supplies include water removal elements and suction roll technology as well a new felt loop with needed guide rolls, doctors, showers and stretchers. Honeywell Devronizer steam box is an important part of the rebuild concept.

The wire width of the machine is 3600 mm and design speed 300 m/min. The maximum daily output of the dryer can reach 1300 tons.

Stora Enso knows Vaahto equipment well in advance. Vaahto has recently supplied technology to most of Imatra machines including liquid packaging board machines BM1, BM4 and BM5 as well art board machine BM2.

Equipment will be manufactured in Vaahto´s workshops in Hollola and Tampere in Finland. The start-up is scheduled for November 2011. The value of this kind of order amounts usually between 2 and 3 million euros.

Vaahto Pulp & Paper Machinery is part of Vaahto Group, which is a globally operating high technology company serving process industry in the fields of pulp and paper machinery and process machinery.

The rebuild of PM10 at Metsä Tissue’s Mänttä Mill was brought to conclusion ahead of schedule, with the first reels produced on 22 April 2010. The revamped machine produces toilet paper and hand towel base paper for products marketed under the Lambi, Serla and Katrin brands.

The investment to rebuild PM10 improves paper formation and enhances product quality and improves energy efficiency. The rebuild will reduce water consumption and contribute to energy savings.

Vaahto Pulp & Paper Machinery was contracted to rebuild PM10 in April 2010. The rebuild schedule was ambitious, but the project proceeded ahead of plan. The delivery included a new Crescent former, headbox and reel plus fully overhauled short circulation and press section. The runnability and speed on the paper machine and converting lines improved clearly resulting in increased efficiency.

Vaahto Group is a globally operating high technology company serving process industry in the fields of pulp and paper machinery and process machinery.

VAAHTO GROUP PLC OYJ

Anssi Klinga
CEO

Information:
Jyrki Strengell
President
Vaahto Pulp & Paper Machinery
tel. +358 400 613800