OUTOTEC OYJ PRESS RELEASE, MARCH 26, 2009 AT 3.00 PM
Outotec expands offerings to energy industry and industrial water treatment
In order to seek growth, Outotec is expanding its offerings to the energy industry and industrial water treatment. The company has established two new business units that will focus on these technologies.
Outotec has several competencies, technologies and proprietary equipment, which are utilized in the mining and metallurgical industry, and which can be adopted in other process industries. These new businesses provide growth opportunities for the company.
Energy and water have increasingly important roles in the global markets. Alternative sources of energy and the use of renewable resources are a great opportunity for Outotec. By utilizing its extensive experience in engineering and project implementation as well as the expertise in water treatment, combustion and heat recovery, Outotec will be able to offer value-adding technologies and services to the energy sector and industrial water treatment.
"These businesses have an excellent fit to our existing technology portfolio and will create new revenue streams. In the long term, our goal is to strengthen the energy and water-related businesses by acquisitions, alliances, and license agreements," explains Tapani Järvinen, CEO of Outotec.
Activities already started in the energy business
Outotec's competencies and offerings for the energy sector include coal charring, gasification and combustion technologies for various plants, for example oil shale pyrolysis and combustion for crude oil production. For all thermo-processing plants, the company offers heat recovery and gas cleaning systems. Outotec maximizes energy efficiency in all of its processes that operate at elevated temperatures by utilizing the off-gas heat in other plant areas as an energy source. This reduces the carbon dioxide emissions of plants using Outotec technology.
Outotec is already cooperating with Eesti Energia, based in Estonia, for the development and marketing of sustainable, energy-efficient and economically viable oil shale processing methods. The company is also currently providing basic engineering and test work for a plant producing oil from Estonian oil shale. Furthermore, Outotec and Sweden-based Skellefteå Kraft AB have decided to establish a joint company, GreenExergy AB, which will focus on the development, marketing, and delivery of technologies for bio-energy power plants to produce bio-energy from forestry and sawmill residues.
"We are seeking growth in the energy business by improving and increasing our technical competencies and offerings related to energy production," notes Dr. Andreas Orth, Vice President - Energy, who will head the newly created energy business unit under the company's Metals Processing division in Germany.
Industrial water treatment as a growing business
Industrial water treatment is one of the fastest-growing business areas in the mining and metallurgical industry and has become a crucial element for many companies facing environmental challenges and stricter regulation. The annual market value of the water treatment business within the industry is estimated to be close to two billion euros.
"We are going to combine our expertise related to water treatment and wet chemistry and develop a business that utilizes Outotec's existing technologies and proprietary equipment," explains Bernd Kerstiens, Vice President - Industrial Water Treatment, who will lead all water-related activities for the company from Espoo, Finland.
For further information, please contact:
Peter Weber, President - Metals Processing
tel. +49 6171 9693 165
Kari Knuutila, Chief Technology Officer
tel. +358 20 529 2009
Eila Paatela, Vice President - Corporate Communications
tel. +358 20 529 2004, +358 400 817198