Valmet Acquires Tieto’s AI-Powered MES Business to Drive Autonomous Mill Operations

#SmartManufacturing #SaaS #IndustrialAutomation #ManufacturingExecutionSystems #ProcessIndustry #IndustrialAI #AutonomousOperations #Valmet #PulpAndPaper #MndA

“As the requirements for mill autonomy grow, the timing is right to acquire a market-leading manufacturing software platform. By connecting customer demand, planning, execution, and real-time process control, we can help customers optimize performance across the entire mill and accelerate their transition towards autonomous operations. This strengthens our position as a strategic partner supporting our customers’ long-term competitiveness and business success.” - Jari Almi, VP, Pulp and Paper Systems, Automation Solutions Business Area - Valmet

Oct 2026 : Valmet has signed an agreement to acquire the manufacturing execution system (MES) business from Tieto, unlocking next-generation automation capabilities for the global pulp, paper, and fibre sectors.

The transaction centres around Tieto Indtech’s flagship TIPS MES - a cloud-ready, web-based Software as a Service (SaaS) platform equipped with generative AI - alongside its integrated Order to Cash solutions. Deployed at roughly 300 production sites worldwide, the business generates approximately €32 million in annual revenue backed by steady, recurring software maintenance streams.

By bridging customer demand, production scheduling, and real-time process control, the deal completes Valmet’s Automation Solutions portfolio, accelerating paper and pulp mills along their roadmap toward fully autonomous operations.

“I am very pleased that we are taking an important step in strengthening our automation business. This acquisition is another concrete demonstration of our strategy in action, as we systematically expand our offering through innovations and targeted acquisitions. Together, these efforts enhance our capabilities and ensure that we continue to strengthen our market position and deliver greater value to our customers as an automation supplier,” says Emilia Torttila-Miettinen, EVP, Automation Solutions Business Area at Valmet.

“As the requirements for mill autonomy grow, the timing is right to acquire a market-leading manufacturing software platform. By connecting customer demand, planning, execution, and real-time process control, we can help customers optimize performance across the entire mill and accelerate their transition towards autonomous operations. This strengthens our position as a strategic partner supporting our customers’ long-term competitiveness and business success,” says Jari Almi, VP, Pulp and Paper Systems, Automation Solutions Business Area at Valmet.

“We are pleased to announce this agreement. Valmet is a strong strategic and industrial owner for the business, with deep industry expertise and a comprehensive offering to the pulp and paper sector. By combining the software solutions with its existing portfolio, Valmet is well positioned to further strengthen the value delivered to customers across their operations and production processes. Given the business’s high degree of autonomy within Tieto, we are confident that the transition will be seamless and successful for customers, employees, and other stakeholders,” says Endre Rangnes, CEO of Tieto.

The acquisition will integrate into Valmet’s Process Performance Solutions segment, with completion slated for Q2 2027 pending customary closing approvals.

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