Metso Outotec aims to become a top-tier supplier of products, technologies and services in the aggregates and minerals industries and a top financial performer.

Targets

Adjusted EBITA margin of >15% over the cycle 

Maintaining an ‘investment-grade’ credit rating 

Dividend pay-out of at least 50% of earnings per share 

Progress in sustainability in alignment with the 1.5 °C commitment 

Strong foundation for implementing the strategy

Key strengths

  1. Comprehensive product and service offering as well as process expertise throughout the customers’ value chain 
  2. Extensive installed base and a strong brand 
  3. Strong aftermarket presence and know-how close to customers 
  4. Industry-leading, sustainability-focused technology, research and product development expertise  

Growth in key customer segments 

Our key customer segments are aggregates, minerals processing, and certain areas of metals refining. Our target markets offer attractive growth prospects and have significant potential for further growth and development of the aftermarket business. Several recognized global megatrends, like urbanization, infrastructure projects, electrification of societies, and climate change mitigation, will support market growth. 

Our primary target in the selected segments is to develop its product and service business by leveraging its comprehensive process expertise. In order to reduce business risks and to improve profitability, extensive project deliveries will be limited when they include other than the company’s own technology and expertise.

Four priority areas of strategy implementation

Integration and financial performance 

Customer centricity 

Sustainability 

Performance culture

Performance culture

Metso Outotec's strategy illustrated.

Aiming for sustainability leadership

Our purpose is to “Enable sustainable modern life”. A large part of our sustainability focus is on climate change and  limiting global warming to 1,5°C. Climate change is one of the biggest challenges to sustaining our way of life, and it is also one where Metso Outotec can play a significant role in addressing it. We are committed to the 1.5 °C journey, with targets that are validated by the Science Based Targets initiative. This will be implemented through a focus on sustainable offerings and innovations and by being a responsible and trusted partner. 

Central to our sustainability efforts is our Planet Positive offering – products that are demonstrably more energy or water efficient than the market standard, or help our customer achieve other priorities such as circularity and safety, as well as services that help our customers improve their productivity . Our Planet Positive portfolio already includes over 100 products and our aim is to keep expanding and improving this offering by continuously innovating

We have set targets to reduce the CO2 emissions of our own operations by 50% by 2024 and logistics by 20% by 2025 compared to the 2019 baseline. We target net zero emissions in our own operations by 2030. We are also targeting that 30% of the supplier spend by the end of 2025 is with partners who have set a Science Based CO2 emissions target. 

Read more from our sustainability section.

Planned divestment of the Recycling business

We have decided to divest our Recycling business. The Recycling business sells products and services for metal and waste recycling. Its sales in 2019 were EUR 156 million, and it reported an adjusted EBITA margin of approximately 6%. The business has around 300 employees and its main locations are Horsens, Denmark; Düsseldorf, Germany; and San Antonio, Texas. 

On July 16, 2021, we announced that we have signed an agreement to divest Waste Recycling business line to Ahlström Capital. The closing of the transaction is expected to take place during the fourth quarter of 2021. Read the press release

“Metso Outotec’s new strategy is coherent and clear, and it will help us to become an industry-leading company in customer satisfaction, sustainability and financial performance."
Pekka Vauramo, President and CEO

Pekka Vauramo's portrait.