Finland-headed forest industry and energy technology provider Valmet Oyj has announced that it has entered into an agreement to acquire Demuth, a Brazilian company specializing in wood handling solutions for the pulp industry.
Subject to relevant competition authority approvals estimated to be completed during the second or third quarter of 2024, this acquisition, the value of which has not been disclosed, will strengthen Valmet’s wood handling technology offering and services presence in South America.
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. The pulp business is growing in South America, both with new greenfield investments and upgrades of the existing mills. By joining Demuth’s offering and production capabilities with Valmet, we can strengthen our position as a wood handling supplier in the pulp mill segment in South America, said 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 comprised 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, said Celso Tacla, Area President of South America, Valmet.
The net sales of Demuth are around EUR 20-30 million annually and the company employs around 300-400 people.
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, ended Fredo Demuth, Founder, Demuth.
