ESPOO, Finland (News Release) -- Valmet has received a reassessment decision from the Finnish tax authority for Valmet Technologies Inc.

The reassessment decision is a result of a tax audit carried out in the company, concerning tax years 2010-2012 when Valmet was part of Metso Group. The Finnish tax authority has requested Valmet to pay additional taxes, late payment interest and penalties in total of EUR 19 million.

The decision concerns compensation charged by Valmet Technologies Inc from its foreign subsidiaries. In this context Valmet is recognizing an income tax liability in the full amount of EUR 19 million and an income tax receivable of EUR 14 million, with net income tax expense impact of EUR 5 million in 2016. The receivable arises from several different tax jurisdictions.

Valmet considers the Finnish tax authority's decision unfounded and will appeal the decision to Board of Adjustment of the Finnish tax authority.

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