#Finland #Espoo #Valmet #MES #Tieto

Valmet to Acquire Tieto's MES Business

Valmet, a global frontrunner in the technology sector for process industries, has recently made waves by entering into an agreement to acquire the manufacturing execution system (MES) business from Tieto. This strategic move is aimed at accelerating the shift toward autonomous operations within the industrial landscape, particularly in the pulp, paper, and fiber industry.

Enhancing Automation Solutions

The acquisition not only encompasses Tieto's advanced AI-powered MES but also includes the Order to Cash solution tailored for the pulp and paper industries. With this addition, Valmet’s existing Automation Solutions offering is set to become more robust. The integration of Tieto’s technology is seen as a major step in reinforcing Valmet's leadership position in pulp and paper automation.

Emilia Torttila-Miettinen, who serves as the Executive Vice President of Valmet's Automation Solutions business area, expressed her optimism about the acquisition. "This moves us closer to achieving our strategic priorities in enhancing automation solutions and tapping into growth opportunities in other process industries. It's a clear testament to our commitment to expanding our portfolio through calculated acquisitions and innovations," she stated.

The Right Timing for Market Expansion

In an era where there is an increasing demand for mill autonomy, the timing of this acquisition appears to be impeccably aligned with market trends. Valmet is now positioned to offer a comprehensive solution that integrates customer demand with production planning, execution, and real-time process control. Jari Almi, VP of Pulp and Paper Systems at Valmet, outlined the advantages this acquisition brings: "By consolidating these controls, we can aid our customers in optimizing performance across their entire operations, thus facilitating their journey towards full autonomy."

Tieto’s MES: A Powerhouse in the Industry

The TIPS MES, a standout offering from Tieto, represents a well-established system designed to connect production planning with actual manufacturing operations, thereby enabling real-time production management. As a cloud-based Software as a Service (SaaS), it not only meets contemporary operational needs but also dovetails perfectly with Valmet’s ongoing AI initiatives. Currently, TIPS MES is a leader in Europe with installations across approximately 300 production sites globally.

With revenues approximating EUR 32 million annually, Tieto's MES business boasts a solid, recurring revenue model derived from software maintenance and support services. The smooth transition for existing customers—who will continue to enjoy uninterrupted support—will be facilitated by Valmet’s global presence and local expertise.

Looking Ahead

Transitioning this newly acquired business into Valmet’s Process Performance Solutions segment marks a significant milestone for the company. Projected to be completed by the second quarter of 2027, this acquisition not only enhances Valmet's market position but also strengthens its role as a strategic partner for customers in the long term. According to Endre Rangnes, CEO of Tieto, Valmet's profound industry expertise and established customer relationships are expected to augment the value delivered through this integration.

Amid increasing demands for enhanced automation and seamless operations in the manufacturing sector, Valmet's latest acquisition signals a forward-thinking approach to industrial challenges. By merging innovative technologies and a deep understanding of industry needs, Valmet aims to lead the charge toward a more autonomous, efficient, and competitive future in the pulp and paper sectors.

In conclusion, Valmet’s acquisition of Tieto’s MES business reflects a strategic move that consolidates technology, reinforces market leadership, and ultimately enhances customer satisfaction within the evolving industrial landscape.