Metso said the demerger would help accelerate growth in both the new

company and the remaining units - Mining and Construction and

Automation.The pulp, paper and power unit, whose products include paper machines

and power plants, generated about 40 percent of Metso's net sales of

7.5 billion euros last year. However, the unit's performance has been

dampened by a global downturn in paper demand when consumers switch to

digital devices.

Metso management believes that the demerger plan will be approved by

the company's board by the end of the second quarter. If the plan goes

ahead, the new company will be listed on the Helsinki exchange before

the end of this year.