Valmet to strengthen its wood handling technology and services in South America by acquiring Demuth

Andrew Snook   


Valmet has announced that on December 21, 2023, it entered into an agreement to acquire Demuth, a Brazilian company specializing in wood handling solutions for the pulp industry.

“This acquisition will strengthen Valmet’s wood handling technology offering and services presence in South America,” Valmet stated in a press release, adding that the value of the purchase will not be disclosed.

“The acquisition of Demuth is strongly linked to Valmet’s strategy to deliver competitive and reliable technologies, services and automation for the pulp, paper and energy industries. Pulp business is growing in South America, both with new greenfield investments and upgrades of the existing mills. By joining Demuth offering and production capabilities with Valmet, we can strengthen our position as a wood handling supplier in the pulp mill segment in South America,” stated Sami Riekkola, business line president, Pulp and Energy, Valmet.

Demuth is a family-owned company established in 1981. The company operates two manufacturing facilities in southern Brazil in the State of Rio Grande do Sul. The net sales of Demuth is around EUR 20-30 million annually and the company employs around 300-400 people. Demuth comprises of companies “Demuth Máquinas” and “Estruturas Metálicas Demuth”.

“With this acquisition we will strengthen our local presence, spare parts business, and field service delivery capabilities, especially in Brazil and increase our competitiveness in South America. The Demuth team will be a welcome addition to Valmet’s current team of about 1,200 professionals in South America,” says Celso Tacla, area president, South America, Valmet.

“Over these decades Demuth has built a strong product portfolio and grown into a trusted provider of wood handling technology and services in Brazil. Now it has come the time to take the next step in developing this business and I see Valmet to be a good home to continue the growth,” stated Fredo Demuth, founder of Demuth.

The acquisition is subject to relevant competition authority approvals and is estimated to be completed during the second or third quarter of 2024.

Source: Valmet.

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