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 and Guangxi Liugong Group Co., Ltd. (LiuGong) have obtained all necessary approvals from the Chinese authorities and the 50%-50% joint venture between the two companies has been officially established. Headquartered in Shanghai, Liugong Metso Construction Equipment (Shanghai) Co. Ltd. (LiuGong-Metso), will combine Metso’s know-how in track-mounted crushing and screening business and technology with LiuGong’s extensive distribution resources (~900 customer service locations in China) and manufacturing capabilities in China.
The initial scope of the joint venture will cover the design and manufacture of localized versions of Metso’s Lokotrack mobile crushers and screens, first of which is expected to be launched during the first half of 2014. The products, whose range may be further expanded in the future, will be sold under dual branding: LiuGong Metso. The joint venture will also promote Metso’s global track-mounted crushing and screening equipment in China. The value of the investment made in the new company will not be disclosed.
“The joint venture enables the capture of a significant market share of the fast growing mobile crushing and screening market in China. Our target is to build a market driven technology offering and the joint venture with LiuGong is a major step towards this direction. Together with the acquisitions of the steel foundry in Quzhou City and Shaorui Heavy Industries Ltd., announced last year, the joint venture significantly strengthen our supply capabilities for mining and construction industries in China.” states João Ney Colagrossi, President, Mining and Construction, Metso.
Today, Metso has a strong and well-established presence in China. Metso’s over 1,500 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.
Founded in 1958 in Liuzhou, China, LiuGong Group Corp. Ltd. (LiuGong) is the largest wheel loader manufacturer in the world. LiuGong offers a full line of machines, including wheel loaders, bulldozers, backhoes, skid steers, forklifts, graders, excavators, rollers, truck-mounted cranes, pavers and cold planners. The company owns facilities in, among other locations, Liuzhou, Tianjin, Shanghai, Changzhou, Zhenjiang, Jiangyin and Bengbu.
