> Hi,
>
>  Thanks for your reply, that solution worked well.
>
>  However I have encountered a problem when i tried to apply the
>  solution to more than one "<vendors>". The iteration becoms wrong. I
> have added an XML  and
>  an XSLT that shows the problem.
>
>  I would be very pleased if some of you could take a look at it and
> propose a solution.

You just need to adjust your paths from absolute to relative:

<?xml version="1.0" encoding="UTF-8"?>
<xsl:stylesheet version="1.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
       <xsl:output method="xml" version="1.0" encoding="UTF-8" indent="yes"/>

<xsl:template match="/">
	<vendors>
		<xsl:apply-templates/>
	</vendors>
</xsl:template>

       <xsl:template match="component">
               <component>
                       <xsl:apply-templates select="cell[@name
='Company']/value"/>
               </component>
       </xsl:template>

       <xsl:template match="cell[@name = 'Company']/value">
               <vendor>
                       <cell name="Company">
                               <xsl:copy-of select="."/>
                       </cell>
                       <xsl:variable name="pos" select="position()"/>
                       <xsl:apply-templates select="../../cell[@name
='Cage']/value1[$pos]"/>
                       <xsl:apply-templates select="../../cell[@name
='Address']/value2[$pos]"/>
               </vendor>
       </xsl:template>

       <xsl:template match="cell[@name = 'Cage']/value1">
               <cell name="Cage">
                       <xsl:copy-of select="."/>
               </cell>

       </xsl:template>
       <xsl:template match="cell[@name = 'Address']/value2">
               <cell name="Address">
                       <xsl:copy-of select="."/>
               </cell>
       </xsl:template>
</xsl:stylesheet>