JOHANNESBURG (miningweekly.com) – Mining equipment maker Joy Global Africa will invest R70-million in a new distribution centre at its Wadeville Centre of Excellence Plant, in Germiston, east of Johannesburg.

At the sod-turning event on Thursday, logistics and distribution director Annalize Engelbrecht told Mining Weekly Online that the facility would be a consolidation of all supply services at its sites in Steeledale, Tulisa Park and Wadeville to support its manufacturing process.

The facility would comprise a 2 000 m² office block and a 8 000 m² distribution centre. Some 150 workers would be deployed to the new centre.

“Parts for our final product and for customers will be stored and distributed from one central point, which will ensure continued flow into our factory, on-time delivery and increase customers availability,” she noted.

Engelbrecht said about 80% of the parts would go to its factory in Wadeville.

Joy Global Africa VP Jason Savage said that the new centre would enable the company to apply best lean practices to achieve strategic goals of growth and being a high-performance organisation.

“The facility will allow efficient and fast delivery of parts and equipment to customers, which will have a significant impact on time and cost savings,” he added.

Savage further stated the centre would contribute to the growth that would be brought on by the company's recently announced distribution and authorised service provider agreement with mechanised roof bolting technology provider Fletcher.

The agreement would allow Joy Global to market, sell and service all Fletcher products to coal mines, as well as hard rock and industrial mineral mines that use Joy Global cutting products.

“The space vacated on our premises, as the consolidation proceeds, will allow us to grow that section of our business. All vacated space will be absorbed by increased capacity and volume that will enable us to support future growth in Southern Africa, which will be fairly substantial over the coming years,” he said.

Guest of honour at the sod-turning, Deputy Mineral Resources Minister Godfrey Oliphant, said the department was confident that Joy Global Africa was moving in the right direction by constructing the new facility.

“We must blow our own bugles in terms of our capacity and expertise in South Africa. Joy Global Afirca is an example of excellence that we have in the country,” he enthused.

The earth works to start construction of the centre would kick off on Friday and would continue for about six weeks, after which construction of the foundations and structure would commence.

The project is expected to reach completion by November.