Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Metso continues to strengthen its presence in the fast growing Chinese construction market through the completion of the acquisition of Shaorui Heavy Industries Ltd. (Shaorui), announced in November 2012. Located in Shaoguan in Guangdong Province, Shaorui is one of the leading mid-market crushing and screening equipment producers in China. 75 percent ownership of Shaorui and approximately 330 employees will transfer to Metso as of today. Metso has an option to purchase the remaining 25 percent of the company in the future. The value of the acquisition will not be disclosed.
“The acquisition is an important step for us and helps us gain deeper knowledge of the products and customers in the Chinese construction markets. Our aim is to better serve the needs of our Chinese customers by developing a market driven technology offering for China. This will be done by utilizing the technological know-how of both Shaorui and Metso to further enhance our product offering”, states Pekka Pohjoismäki, President, Crushing and Screening business line, Mining and Construction, Metso.
Furthermore, it forms a good platform for future growth in terms of the leading crushing and screening market position by combining Metso’s current premium product offering with Shaorui’s excellence in mid-market products. After the acquisition, Metso will have a better product portfolio for penetrating also to other emerging markets.
“Our recent actions in China, the acquisition of Shaorui Heavy Industries Ltd. and the joint venture with LiuGong Group Corp. Ltd., announced last November, significantly strengthen our supply capabilities for the Chinese construction industry”, he continues.
Metso in China
The year 2013 marks Metso’s 80-year anniversary in China. The company’s first contract from China, a paper machine delivery, was signed in 1933. Today, Metso has a strong and well-established presence in China. Metso’s about 3,500 employees in China address local customer needs in all Metso’s key customer industries, and support the sustainable development of China’s industries and infrastructure.
Shaorui Heavy Industries Ltd. is one of the leading mid-market crushing and screening equipment producers in China. It employs some 330 people. Shaorui has a leading local market position and a well-known brand in South China; it is headquartered in Shaoguan of Guangdong Province.
