Metso buys South Korea globe valve firm Valstone
Metso has acquired South Korean globe valve technology and service company Valstone Control, officials with both companies confirmed on Thursday.
The acquisition enables Metso to expand its offering for the oil and gas and power industries with globe valve technology that plays a key role in most critical processes with extreme pressures and temperatures, the company said.
Valstone is a privately owned globe valve and service specialist company.
Valstone has an established customer base in Korean engineering, procurement and construction (EPC) companies and in domestic South Korean petrochemical and power generation industries.
Valstone’s globe valves add to Metso’s current wide portfolio of control valves, company officials said.
The acquisition also strengthens Metso’s position in the Asia Pacific market area, which is one of the main growth areas for Metso’s valve technologies and services, according to the firm.
In particular, it provides Metso with a key position to further improve its presence in the domestic South Korean market, officials said.
With a combined technology offering, Metso says it can now offer South Korean customers a more comprehensive product offering and services.
Moreover, Metso said it further plans to develop partnerships with leading South Korean engineering, procurement and construction (EPC) companies.
The region’s EPC companies have gained a strong market share in recent years, especially in the growing Middle East market, by winning contracts from major global customers.
“It is a clear benefit for us that we are now close to South Korean and other EPCs in the region,” said Markku Simula, president of the flow control business line within Metso Automation.
“They are important partners, and we can offer them technology that is known and proven for them,” Simula added. “This improves our position significantly when these companies choose key suppliers for new projects.”
Metso’s flow control segment solutions include control valves, automated on/off and emergency shut-down valves, as well as smart positioners and condition monitoring, the company said.
Metso’s brands include Neles, Jamesbury and Mapag.
Metso says that services are a major part of the offering. For example, customers like Petrobras and Arcelor Mittal have awarded Metso with large service contracts.
The Valstone acquisition can improve Metso’s service capabilities in the South Korean market, the company said.
For valve customers alone, Metso already has 31 service centers around the globe, and a new valve supply and service center will be opened in India this spring.
Valstone’s production and office facilities are located in Chungju, South Korea.
Financial terms of the deal were not disclosed.
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