https://www.miningweekly.com

Epiroc pursues stronger growth after Atlas spin-off

25th January 2019

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

Font size: - +

A year after unbundling from an Atlas Copco business unit into a fully owned independent subsidiary, mining, infrastructure and natural resources equipment spin-off Epiroc is optimistic about the future and eyes growth of 8% a year in the short to medium term.

Equipped with a mostly organic and bolt-on acquisitive growth strategy, Epiroc president and CEO Per Lindberg tells Mining Weekly of the company’s ambitions to become the best in the industry in terms of profitability, beyond the success that has emerged over the past year.

“So far, so good,” he says, highlighting the strategies that include technological development and innovation and the improvement and growth of existing business with bolt-on acquisitions, as opposed to large acquisitive activities.

Epiroc’s latest acquisition includes a South African underground rock reinforcement products manufacturer.

In November, Epiroc agreed to acquire Johannesburg-based Innovative Mining Products, which is more commonly known as New Concept Mining.

Innovative Mining Products, with facilities in Peru, Zambia and Canada, manufactures a comprehensive range of underground mining roof-support products, rock monitoring systems and related accessories.

Innovative Mining Products, which has about 900 employees, posted R950-million in revenue during the year to September 30.

“This acquisition will enable us to strengthen our global position in the hard rock bolting market,” says Epiroc mining and infrastructure senior executive VP Helena Hedblom.

The acquisition is expected to be completed in the first quarter of 2019, pending approval from regulatory authorities.

This follows on several acquisitions worldwide throughout the year, as the group targets several bolt-on acquisitions to strengthen its capabilities.

Epiroc was spun out of Atlas Copco’s global mining and rock excavation technique business cluster and its construction tools division in November 2017.

The industrial segment remained with Atlas Copco, while Epiroc went on to become a fully independent company when it listed on the Nasdaq Stockholm.

With Epiroc dedicated to the mining and civil engineering sectors and Atlas Copco focusing on the industrial market, the split provides the best growth opportunities for both listed companies.

In the third quarter of 2018, Epiroc achieved growth across the board, with strong revenue and profit.

In

the July to September 2018 quarter, orders received increased 10% to kr9.4-billion; revenues increased 27% to kr9.65-billion; organic growth rose 19%; and operating profit was kr1.89-billion, including costs of kr126-million related to the split from Atlas Copco and the change in provision for long-term incentive programmes.

In September, Murray & Roberts Cementation placed more than R160-million of mining equipment orders with Epiroc for its underground production build-up of the Kalagadi manganese mine, in the Northern Cape.

The group also continues to focus on technology and intelligent mining to help its clients create greater value through innovations in battery technology, automation and interoperability to drive the future of intelligent mining, which includes the fossil-free mine concept and mechanical rock excavation.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

Comments

Showroom

Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:2.38 2.425s - 88pq - 2rq
Subscribe Now