ESPOO, Finland (News release) -- Valmet has completed the acquisition of Demuth following the agreement that was announced on December 22, 2023. Demuth is a Brazilian company specializing in wood handling solutions for the pulp industry.

The value of the acquisition will not be disclosed. The acquired operations will be included in Valmet's financial reporting for the first time in the third quarter of 2024.

Demuth operates two manufacturing facilities in southern Brazil in the state of Rio Grande do Sul. The net sales of Demuth are around EUR 20-30 million annually, and the company employs around 400 people.

Demuth facility in Portão, Brazil

The acquisition is in line with Valmet's strategy to develop and supply competitive and reliable process technologies, services and automation to pulp, paper and energy customers. This acquisition significantly strengthens Valmet's wood handling technology offering and services presence in South America.

"The acquisition was completed as planned after the approval of the competition authorities' review. We are very happy to welcome the new colleagues from Demuth to join our Valmet South America team. With stronger local presence in Brazil and with further improved capabilities to deliver new wood handling equipment, spare parts, and field services, we are able to serve our customers even better and help to take their performance forward," says Celso Tacla, Area President, South America, Valmet.

"South America is an important growth market for Valmet's pulp business. There are several new greenfield pulp mills being planned to be built in Brazil and several of the existing mills will be modernized in the coming years, in Brazil and other countries in South America. With expanded wood handling offering and equipment manufacturing capabilities, we can strengthen our position in these projects. Our whole organization is looking forward to very close cooperation with our new colleagues," says Sami Riekkola, Business Line President, Pulp and Energy, Valmet.