Purchases

Procurement at the 2008 peak year level

The value of Metso's purchases in 2011 was EUR 4,319 million (EUR 3,470 million in 2010). Approximately 75 percent of our purchases were directly related to products, such as raw materials and components, and the remaining 25 percent were indirect purchases, i.e. goods and services necessary to maintain operations.

The growth in production volumes kept pace with the growing procurement volumes in all market areas. The strong shifting of main markets to emerging countries, particularly the BRIC countries (Brazil, Russia, India and China), was also reflected in purchases. Purchases in the BRIC countries continued to multiply compared to the traditional main procurement areas. Metso's strategy of aiming to move services close to the customer affected also purchases.

In order to gain cost benefits from the global supply chain, we have aimed to increase the volume of purchases from countries with a lower cost level. While we have succeeded in doing this, the Nordic countries remained our biggest procurement area with an approximately 40% share. The share of the Nordic countries decreased somewhat, although the biggest increases per factory came from the large Finnish and Swedish units. The growth was strongest in the Mining and Construction segment.