Metso’s President and CEO Jorma Eloranta comments: “In the first quarter most of our markets and customer industries continued to recover. It seems that the recovery is gaining momentum, and is today broader based than during the past six months. Our customers' higher capacity utilization rates have boosted the activity level of our services business and since our customers are regaining their confidence the demand for new capital equipment and project business has also improved. Price competition in the markets seems to be easing up as the trading environment is getting stronger.

The measures we have carried out in the past few years to develop our operating models and to adjust our cost structures have supported our first-quarter profitability although net sales were still relatively low following modest order intake levels in 2009. Assuming that we continue to win new, profitable orders, net sales for the coming quarters should also be picking up. The first quarter confirmed that due to our decisive and quick response to the market turmoil in the second half of 2008 through 2009, Metso is today a more competitive company than before.

We have gradually started ramping up the engineering and manufacturing capacity to match the improved demand but there seems to be some slowness in our component supplier and subcontractor base to ramp up their capacity. Likewise we are also continuing to further develop our services business and global presence as well as our solutions based on environmental business.

Based on the recovery in order intake during the past 6 months and the current market outlook we are somewhat raising our net sales guidance for 2010. We estimate that our net sales will be over EUR 5 billion. We expect our 2010 profitability to be satisfactory.“

Short-term outlook
Global economic recovery is strengthening and there are positive signs in demand in most of our customer industries. The improving capacity utilization rates are supporting our services business and most of our customers are gradually regaining their confidence to increase the level of their investments.

The number of quotations for equipment and projects from mining companies has clearly increased. This has already had a positive impact on our orders and we expect this to continue during the rest of 2010, contributing to an overall satisfactory trading environment. Due to the strengthening demand and price level for minerals as well as our large installed equipment base, we expect demand for our mining services to continue to improve.

We anticipate that demand for equipment used in aggregates production by the construction industry will be satisfactory in Europe and weak in North America during the year. In the Asia-Pacific region and Brazil, infrastructure construction projects are maintaining good demand thanks to economic growth and stimulus packages. We estimate that demand for our services business for the construction industry will remain satisfactory.

Demand for power plants that utilize renewable energy sources is expected to be good in Europe and North America in 2010. Several countries have published targets to increase the use of renewable energy and this is expected to support demand for our power plant solutions fuelled by biomass and waste. Demand for the power plant services business is expected to be satisfactory.

We estimate that demand for our automation products will be satisfactory during this year, as the oil, gas and petrochemical industries increase their investments due to the improvement in energy prices and demand. Demand for our services business for automation is expected to be satisfactory.

We expect the demand for metal recycling equipments to improve due to the increasing production volumes of steel, resulting from the strengthening of the global economy. The demand for solid-waste recycling equipment is estimated to be satisfactory. Demand for recycling equipment services is expected to improve in 2010 as the capacity utilization rates of our customers’ plants and equipment improve.

We estimate that demand for new fiber lines will recover to a satisfactory level, and demand for rebuilds and services will strengthen during the year. Demand for paper, board and tissue lines is expected to be satisfactory. We expect the capacity utilization rates of the paper and board industry to improve during the year, which should increase the demand for our services business.

We estimate that our net sales in 2010 will exceed the EUR 5 billion level of 2009, and that our profitability will be satisfactory. Our estimate is based on our order backlog, which contains about EUR 2.6 billion worth of deliveries for 2010, and on the expectation that the recovery of the global economy will continue.

The net sales and profitability estimates are based on Metso’s current market outlook and business scope as well as foreign exchange rates similar to the first quarter.

Previous guidance (from Financial Statements Review 2009, published on February 8, 2010):
“We estimate our net sales in 2010 to remain at about the same EUR 5 billion level as in 2009, and profitability to remain satisfactory. Our estimate is based on our order backlog, which contains about EUR 2.7 billion worth of deliveries for 2010, and on the expectation of continued gradual recovery of global economy. The net sales and profitability estimates are based on Metso’s current market outlook and business scope.”

Metso’s financial reporting in 2010

The Interim Review for January–June 2010 will be published on July 29, and the Interim Review for January–September 2010 on October 28.

Metso is a global supplier of sustainable technology and services for mining, construction, power generation, automation, recycling and the pulp and paper industries. We have about 27,000 employees in more than 50 countries.

For further information, please contact:
Jorma Eloranta, President and CEO, Metso Corporation, tel. +358 204 84 3000
Olli Vaartimo, Executive Vice President and CFO, Metso Corporation, tel. +358 204 84 3010
Johanna Henttonen, Vice President, Investor Relations, Metso Corporation, tel. +358 20 484 3253

Metso, the second largest company in the Tampere region, will relocate its more than one thousand energy and environmental technology experts currently working in Tampere to modern premises in the Rantaperkiö and Lahdesjärvi sections of Tampere. The target is to improve general operating conditions. These arrangements will also mean savings in fixed costs, including rents.

The “Metso House” in Rantaperkiö will become an internationally notable cluster of boiler and automation expertise for bioenergy solutions when the vast majority of Metso’s Power business line employees in Tampere, approximately 440 persons, move there in July 2010.

-Energy is one of Metso’s strategic growth areas. There is growing worldwide demand for know-how related to renewable energy sources, and in Tampere we can get the making of bioenergy solutions in Metso's Power and Automation businesses under one roof. The two business units already have joint customers and development projects. In the Metso House we want to strengthen cooperation and easy collaboration between different business areas, says Kai Mäenpää, Vice President, Capital Projects, Power business line.

The building already seats more than 500 Automation business line employees, so the Metso House will become a joint base of operations for more than one thousand energy and environmental technology experts.
The addition of several hundred commuters will also have an effect on public transportation planning in the area.

Production Competence Center in Lahdesjärvi
Metso’s Power business line also plans to establish a Production Competence Center at the property previously used by Metso’s Tampere Roll Factory in Lahdesjärvi. Relocating the majority of the current production lines of Power business line’s Tampere factory in Messukylä to the new Production Competence Center is planned for the turn of 2011.

The conversion of the Lahdesjärvi factory site for Power business line’s needs means a 6 million euro investment in redemption of the factory property, expansion of the production facilities, as well as production equipment.

- The new location is optimal for the transport of boiler prefabricates and central for personnel mobility. The production premises are planned to be expanded by about 3,000 square meters, says Olli Aalto, General Manager, Tampere Works, Power business line.

In addition to the production function, the new Production Competence Center will develop new and efficient production technology for boiler production and support Metso’s global production network with its production know-how. An extensive personnel training program will be implemented for this purpose.

The factory property was vacated by Metso’s Paper business line in 2009.

Metso is a major employer in the Tampere region

Metso is the second largest company by employees in the Tampere region. It has over 3,100 employees in Tampere and in Valkeakoski.

Metso is a global supplier of sustainable technology and services for mining, construction, power generation, automation, recycling and the pulp and paper industries. We have about 27,000 employees in more than 50 countries. www.metso.com

For further press information, please contact:

Kai Mäenpää, Vice President, Capital Projects, Power business line, tel. +358 20 141 2410
Juha Parvela, Vice President, Production, Power business line, tel. +358 20 141 2600

Result for the first quarter of 2010
Sales EUR 602 million (Q1/2009: 623)

Operating result excluding non-recurring items EUR 39 million (-65). Operating result including non-recurring items EUR 49 million (-118).

Result before taxes excluding non-recurring items EUR 15 million (-62). Result before taxes including non-recurring items EUR 25 million (-115).

Earnings per share from continuing operations excluding non-recurring items EUR 0.03 (-0.18) and including non-recurring items EUR 0.06 (-0.32).

Events during the first quarter
In January, M-real made a partial early redemption of its 2010 bonds (originally EUR 400 million) with a nominal value of EUR 250 million.

M-real booked a positive EUR 12 million non-recurring item related to IT.

M-real announced price increases in all its main products.

"M-real's result improved further during the first quarter and we achieved a clearly positive net result. However, M-real's structural change is not ready yet; we have several measures underway to improve profitability further. The demand has improved in all of M-real's main products. M-real will increase the prices of all main products to cover increasing fibre costs."
CEO Mikko Helander

In February 2010, Voith Paper successfully rebuilt Kimberly Clark’s tissue machine TM 2 at the Enstra Tissue Mill in South Africa. The order covered structure refurbishment including installation and supervision service. To ensure improved operational reliability the framing was given a general overhaul and the main framing parts were replaced.

Kimberly Clark Enstra produces tissue products with various basis weight ranges and furnishes on two tissue machines. TM 2 produces tissue with a web width of 3,450 mm. Start-up of this asset was in 1976.

Voith Paper has many years of experience in the field of forming and structural reconstruction and is one of the leading providers of innovative rebuild solutions.

Voith Paper is a division of the Voith Group and the leading partner to and pioneer in the paper industry. Through constant innovations, Voith Paper is optimizing the paper manufacturing process, focusing on developing resource-saving products to reduce the use of energy, water, and fibers.

Voith is setting the standard in the paper, energy, mobility, and service markets. Established on January 1, 1867, Voith currently has 39,000 employees, € 5 billion in sales, and over 280 locations worldwide and is one of the largest family-owned businesses in Europe.

Voith is an official partner in the "Germany - Land of Ideas" initiative.

Contact
Anja Zittlow
Tel +49 7321 37-2231 | Fax +49 7321 37-7227
E-Mail This email address is being protected from spambots. You need JavaScript enabled to view it.

The Arbitral Tribunal appointed by the Redemption Committee of the Central Chamber of Commerce of Finland has today by its decision confirmed that Metso Corporation has the right to redeem about 2 percent minority shares in Tamfelt Corp. and that Metso has the right to obtain title to the minority shares in Tamfelt by lodging a security approved by the Arbitral Tribunal for the payment of the redemption price and the interest accruing thereon.

Metso has today lodged the security of EUR 5.5 million approved by the Arbitral Tribunal and, therefore, gained title to all the shares in Tamfelt in accordance with Chapter 18, Section 6 of the Finnish Companies Act. After lodging the security, the minority shareholders of Tamfelt being parties to the redemption proceedings are entitled to receive the redemption price and the interest payable thereon.The redemption price and the interest thereon is estimated to be confirmed by the arbitral award in June 2010, at the earliest. Metso will pay the redemption price within a month after the arbitral award has become legally binding, which is estimated to take place in August 2010 the earliest.

Upon application by Tamfelt, NASDAQ OMX Helsinki Ltd (the Helsinki Stock Exchange) has decided that the shares in Tamfelt will be delisted from the official list of the Helsinki Stock Exchange when title to all shares in Tamfelt has been transferred to Metso. The trading and the listing of the Tamfelt shares on the Helsinki Stock Exchange will therefore cease in accordance with a separate release to be published by the Helsinki Stock Exchange.

Metso is a global supplier of sustainable technology and services for mining, construction, power generation, automation, recycling and the pulp and paper industries. We have about 27,000 employees in more than 50 countries. www.metso.com

Further information, please contact:
Johanna Henttonen, Vice President, Investor Relations, Metso Corporation, tel. +358 20 484 3253

The Belgian Burgo Ardennes sa company, owned by Burgo Group, has attained the OHSAS 18001:2007 certification.
The OHSAS (Occupational Health and Safety Assessment Series) certification identifies the International occupational health and safety management system specification standard.

The certification of conformity attained by Burgo Ardennes certifies the voluntary application of a management system within the organisation granting adequate control, as well as strict and effective management of Health and Safety of people engaged in work, besides the full respect of current regulations and Company's values.

The management system regulated by OHSAS rule is set up by integration with the environmental management system inspired by the 14001 norm: occupational health and safety are important part of the continuous commitment of the Company towards a respectful and sustainable development.

Coherently, OHSAS certification follows ISO 9001 and ISO 14001 certifications , FSC® and PEFC® chain-of-custody certifications and EMAS registration, all already attained by Burgo Ardennes, pursuing thus a policy of continuous improvement and constant concern on environmental matters.

Verso Paper Corp. has announced its release of "A Renewable Commitment - Sustainability Report 2009." The report shares Verso's continued commitment to valuing the principle of sustainably balancing environmental, social and economic needs.

"The focus on renewable commitment was particularly important during 2009, a challenging year to be in the paper business," said Mike Jackson, Verso's President and Chief Executive Officer. "Our people took on every challenge with determination and resourcefulness holding fast to our sustainability principles. We were able to create value for our stakeholders by perpetually driving for performance improvements and demonstrating a truly renewable commitment to financial success, environmental excellence and social responsibility."

2009 Sustainability Report Highlights

* Verso's commitment to safety excellence was demonstrated with a total incidence rate (TIR) for injuries of 1.92, a historic low for the company and nearly two times better than the industry average.
* Verso increased certified fiber use from third party suppliers to 69% from 65%, surpassing the goal of 67%. In addition, Verso expanded its collaboration with other stakeholders to help increase the overall amount of certified fiber available in the marketplace.
* Verso increased the amount of carbon-neutral biomass energy used to run its operations to 53.6%, up from 53.1% in 2008.
* Verso was awarded a $9.3 million grant by the U.S. Department of Energy, which the company matched with an additional $9.6 million, to implement 12 energy projects that will improve energy efficiency by 33% and save about 1.27 trillion Btus annually.
* Verso partnered with one of its top customers, The National Geographic Society, to measure the carbon footprint of National Geographic magazine, which is printed on paper made at Verso's Androscoggin mill in Maine. This project helped the company further refine the lifecycle assessment model it developed in 2008.
* Building on its expertise in manufacturing lightweight papers that require fewer natural resources to produce, Verso expanded its product offerings to include a line of lightweight uncoated printing papers and a line of supercalendered papers for the magazine, catalog and retail insert markets.
* During particularly difficult economic conditions, the Verso organization reached out to their neighbors and maintained the previous year's level of giving to United Way.

For more information, download a full copy of the Verso 2009 Sustainability Report from the company's Web site at www.versopaper.com/sustainability.

About Verso

Based in Memphis, Tennessee, Verso Paper Corp. is a leading North American producer of coated papers, including coated groundwood and coated freesheet, and supercalendered and specialty products. Verso's paper products are used primarily in media and marketing applications, including magazines, catalogs and commercial printing applications such as high-end advertising brochures, annual reports and direct-mail advertising. Additional information about Verso is available on the company's Web site at www.versopaper.com.

SOURCE: Verso Paper Corp.

Verso Paper Corp.
Monica Garvey, Sustainability Manager, 901-369-4154
This email address is being protected from spambots. You need JavaScript enabled to view it.
www.versopaper.com

European Union demand for wooden pellets will continue to drive U.S. production but will also limit the industry’s profitability, according to the head of a bioenergy, wood and forest products consulting firm.

“The pellet business is marginal,” said Pete Stewart, president and chief executive officer of Forest2Market, based in Charlotte, N.C. “The Europeans know how much it costs to produce pellets, and they’re not going to pay more.”

Stewart was the keynote speaker at the first day of the LSU AgCenter’s Louisiana Forest Products Development Center conference on wood-based biofuels, biomass and bioenergy. Around 80 people attended Thursday’s sessions.

Europe is about 15 years ahead of the United States in terms of legislation to limit carbon emissions, Stewart said. In the United Kingdom, 20 percent of the country’s energy must be produced by renewable resources by 2020; only six percent is green energy now.

To meet those goals, the United Kingdom will have to import about 12 million tons of pellets a year, Stewart said. If one-third of that production comes from the United States, then eight to 12 new pellet plants will be needed.

And that doesn’t include the demand that will be generated by northern Europe and France, he said.

Pellets are made from the less costly wood used by pulp and paper mills. The wood is ground into sawdust and pressed into small pellets, which are burned in power-generation plants. The pellets are considered carbon neutral because trees produce the same amount of greenhouse gases whether they’re burned or decay naturally.

Stewart said Europeans are generating “true green demand,” meaning they think green energy is a good idea and are willing to pay extra for it.

In the United States, people think green energy is a good idea but they aren’t willing to pay for it, Stewart said.

However, there are a number of factors that will limit the export of pellets, Stewart said. For one thing, there are only four or five ports in the South that can handle the enormous cargo ships needed for pellet shipments, and a handful of other ports that can be modified, at great expense, to do so.

Stewart said there are other limiting factors for pellet plants, in Louisiana and elsewhere, including a limit on the supply of wood, Stewart said. A pellet mill comes in that needs 500,000 tons to 1 million tons of wood a year generates a price shock, driving up prices for everyone.

Both those factors appear to favor Point Bio Energy LLC’s just-announced plant at the Port of Greater Baton Rouge. Point Bio officials say the deepwater port and the supply of wood were the major reasons to build the plant here.

However, Stewart said competition for the feedstock to make the pellets from existing industries, such as pulp and paper mills, will also limit the growth of pellet plants.

The economic impact of a pulp or paper mill is just much greater than a pellet plant, Stewart said. Politicians don’t want to be seen as supporting a pellet plant that employs 100 people over a paper mill that employs 1,000.