Global minerals solutions supplier Weir Group announced last month that it would buy the Port Elizabeth-based Xmeco Foundry, which will form part of its Weir Minerals Africa business unit, an integral part of the Weir Minerals division.

This acquisition will expand its in-house casting capability and enable the local production of its product range in support of global growth, while simultaneously expanding Weir’s capacity and capability on the African continent. Subject to regulatory approval, the purchase is expected to be completed in May this year.

Xmeco Foundry, which specialises in large castings, occupies a 4.5 ha site in the Neave industrial park, in the Neave township of Port Elizabeth, where it manufactures castings varying in size from a few kilograms to a maximum of 18 t in a variety of alloys. The privately owned company, employing more than 100 personnel, was established in 1978 by the father of current owner John Exley. Exley has agreed to remain with the business to manage special projects relating to the foundry’s expansion, modification and integration.

Weir Minerals’ Middle East and Africa regional MD Dave Athey says that, subject to regulatory approval, the acquisition of Xmeco Foundry is consistent with the company’s growth strategy and will support the African and Minerals divisional requirements.

“The Xmeco Foundry acquisition complements our existing African operation, adds the heavy bay capacity that is vital for future growth and boosts our existing foundry expertise with valuable new talent and specialised foundry personnel. “It will also enhance productivity with the application of Weir’s lean philosophy in the production, manufacturing technology, supply chain and front-end business processes,” he adds.

“Xmeco Foundry is a well-managed business that, with our guidance, investment and leading-edge technology, will be developed to reach its full potential. In return, Xmeco Foundry will add significantly to our capabilities, as it is the perfect fit for our strategy and future growth plans. “The investment broadens our core foundry capability in a space we understand well, while providing extensive opportunities for the combined business and the people it employs.”

Commenting on the sale of his business, Exley adds: “I’ve been looking for a partner capable of taking this business into the future, building on what has already been achieved. Securing the longevity of the facility, the job opportunities created and the contribution to the economy as a whole were all important factors in making my decision. Weir’s proven track record, manufacturing excellence and the impressive development of its Gauteng-based facilities leave me in no doubt that this is the correct decision for the next phase in Xmeco Foundry’s life and development.”

International Acquisitions

Weir Group has also completed two other international acquisitions in early 2013. Weir has extended its leading presence and capabilities in global mining and oil sands markets with the acquisition of Canada-based manufacturer of wear-resistant linings the R Wales group of companies, and its best-cost supply chain strategy has been advanced, with the acquisition of the Cheong foundry, in Malaysia.

With Canadian facilities in British Columbia and Ontario, as well as a US facility, in Arizona, R Wales designs and manufactures rubber lining for pipes, tanks, chutes and hoses. It specialises in customised rubber and urethane-moulded products and mill liners.

The acquisition not only extends Weir’s aftermarket position in the production and servicing of a wide range of rubber-lined wear components for the North American oil sands and mining sectors but also complements its existing customer base and product portfolio.

Together with the acquisition of Xmeco Foundry in South Africa, Weir has advanced its global foundry supply chain strategy with the acquisition of the business and assets of the Cheong foundry. Based near Kuala Lumpur, the facility supplies castings to several industries, including mining and power. The acquisition enables Weir to add foundry capacity to serve the Asia-Pacific region with high-quality products from a best-cost sourcing region.

“The R Wales group and the Cheong and Xmeco foundries enhance the group’s presence in important growth markets. “The R Wales group develops our leading aftermarket offering in the minerals and oil sands sectors, while the Cheong and Xmeco foundries expand our low-cost capacity in the fast-growing regions of Asia-Pacific and Africa, enabling us to deliver quality products more quickly to our customers,” says Weir CEO Keith Cochrane.