Metso to Supply Paper Machine Rebuild to ITC Bhadrachalam, India

Helsinki, Finland, 30 October 2006 -- Metso Paper will supply ITC Limited Paperboards and Specialty Papers Division in India with a paper machine rebuild. The pre-owned machine will be imported and relocated at ITC's Bhadrachalam mill in Andhra Pradesh state.

The fine paper machine will increase the mill's production capacity by 100,000 tons/year and it is scheduled to start up during the first half of 2008. The value of the Metso order is in the range of EUR 15 million.

The modernization will consist of a former unit, a new press section, dryer section runnability components, and new surface treatment equipment for finalizing the paper quality.

The 5.3-m wide PM 6 will produce uncoated and coated woodfree printing and writing grades. Machinery upgrades will have a design speed of up to 1000 m/min.

Using appropriate technology, ITC and Metso have worked closely together to develop the Bhadrachalam mill's production capacity to a new level. The latest co-operation projects include an ozone bleaching stage to the existing Metso-supplied fiber line, as well as a totally new fiber line. Both projects are due to start up in fall 2007. In addition, Metso will supply a modernization and a new reel for the Bhadrachalam PM 4 board machine in spring 2007.

ITC Limited is one of India's foremost private sector companies with a turnover of USD 3.5 billion. The company's Paperboards and Specialty Papers Division is one of the largest manufacturers of packaging and graphic boards in South Asia. The Bhadrachalam mill, which is the country's largest single location mill, produces close to 280,000 tons/year of paper and board.

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.

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