Valmet has launched a strategic review to evaluate whether separating its two core business segments into independent publicly listed companies could create greater long-term value for shareholders.

The review will examine whether operating the businesses as stand-alone companies would offer advantages over Valmet’s current integrated structure. According to the company’s board of directors, no decision has been made, and any separation will only proceed if detailed analysis shows it is in shareholders’ best interests.

The two businesses under review are:

• Biomaterial Solutions and Services, serving the pulp, paper, board, tissue and energy industries.
• Process Performance Solutions, which includes automation and flow control technologies serving a broad range of industrial sectors.

Although both businesses currently operate within Valmet, they already report as separate business segments and have developed into large, profitable operations with sufficient scale to function independently.

The board said the recent acquisition of Severn makes this an appropriate time to evaluate whether a new corporate structure could allow each business to better realize its long-term growth potential.

Different Markets, Different Growth Strategies

According to Valmet, the two businesses have increasingly different market characteristics.

The Biomaterial Solutions and Services division remains focused on the global pulp, paper, board, tissue and energy industries. The business is supported by an extensive installed equipment base, process technologies and a broad service network serving customers worldwide.

Meanwhile, Process Performance Solutions has expanded significantly beyond its traditional pulp and paper customer base over the past decade. Today, nearly 70% of its net sales come from industries outside the pulp and paper sector, reflecting its broader automation and flow control portfolio.

The board noted that the businesses serve largely different customer groups, have distinct market drivers and require different approaches to capital allocation.

Strategic Review Focuses on Shareholder Value

As part of the review, Valmet will assess whether a separation could provide several strategic benefits, including:

• Greater management focus for each business
• More flexible capital allocation
• Improved access to external financing
• Simplified corporate governance
• Increased transparency for investors
• Better recognition of each business’s standalone value by capital markets

Board Chair Pekka Vauramo said the company will only move forward if the review concludes that a separation would clearly benefit shareholders.

What It Could Mean for the Pulp and Paper Industry

For the pulp and paper sector, the review could eventually create a more focused supplier dedicated to pulp, paper, board, tissue and energy customers, while allowing Valmet’s automation and flow control operations to continue expanding across a wider range of industrial markets.

At this stage, the review remains under evaluation, and Valmet has not announced any final decision. The company said it expects to provide an update when it releases its full-year 2026 financial results.

Last Updated on 29/07/2026 by Jota Machinery