Metso and Progen to create a joint venture for project construction management in Brazil

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Metso and Progen to create a joint venture for project construction management in Brazil

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Brazil

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Metso and Progen to create a joint venture for project construction management in Brazil Metso and Progen, a Brazilian engineering and consulting company specialized in project management and implementation, have formed a joint venture in order to strengthen strategy and to diversify the activities in Brazil. The parties have founded a new company, Valpro gerenciamento de obras Ltda, to attend exclusively to Metso projects in the South American pulp, paper and energy market, supplying specialized technical services in construction and erection management, commissioning and start-ups. The value of the agreement is not disclosed. The new company is planned to start its activities during the next 30 days, with its head office located in São Paulo. "We believe in the potential of the pulp, paper and energy market. It will continue to be an interesting segment, especially with the Chinese demand, that has boosted the Brazilian pulp exports", says Eduardo Barella, Progen's CEO. Progen's expertise in project management and implementation, combined with Metso's know how in the pulp, paper and energy business, are the biggest advantages for Valpro. "This company will add value to the new projects bringing in the best management practices which have proven successful in other markets" explains Eduardo Barella, Progen's CEO. Edmund Schwarz, Projects and Supply Chain director at Metso, comments that "from now on we will have a leading company fully dedicated to site management, performed earlier by subcontractors. We will ally what is best at Metso and Progen and apply it at Valpro". Progen, the second biggest consulting engineering company in Brazil, leads the mining projects market in Brazil and has increased its investments in the infrastructure sector. In 2011, it acquired 80% of the project and engineering company R. Peotta, specialized in infrastructure projects especially in the port segment, and 50% of the Brazilian operations of AudingIntraesa – an investment that has originated the Progen TAMA, a company that resumed operation in 2012. Metso’s pulp, paper and power professionals specialize in processes, machinery, equipment, services, paper machine clothing and filter fabrics. Our offering and experience cover the entire process life cycle including new production lines, rebuilds and services. As of January 2014, Metso's Pulp, Paper and Power business will serve its customers with an even more focused and competitive approach as an independent, listed company, Valmet Corporation*. http://www.metso.com/news/newsdocuments.nsf/web3newsdoc/4B9583562553FA35C2257BBB0036DF1F?OpenDocument&ch=ChMetsoPaperWebEng#.Uf9z8X9sI6Z Project Name Metso and Progen to create a joint venture for project construction management in Brazil Location Brazil Commence 2013 Completion -NA- Estimated Investment -NA- Capacity -NA- Key Players Metso and Progen