The Weir Group PLC : Acquisition
The Weir Group PLC
18 April 2013
Weir expands integrated ore-processing platform for mining markets
The Weir Group PLC ("Weir") is expanding its market leading presence in mining
and minerals markets through a number of agreements which significantly
enhance its platform for growth in the comminution segment of minerals
processing, a c.£3bn global market for crushing, grinding and screening
equipment and services.
Exclusive agreement for the design, manufacture and distribution of grinding
Weir has signed an exclusive and perpetual licence with KHD, giving direct
control over the design, manufacture and distribution of High Pressure
Grinding Rolls (HPGR) in minerals processing applications using KHD
technology. KHD will receive royalty payments on equipment sales. Several
KHD technical staff focused on HPGR use in minerals processing will be offered
employment with Weir.
Over the past three years Weir has acted as KHD's agent for the marketing of
HPGRs in the minerals sector, operating on a commission only basis. Over 2011
and 2012, KHD's order intake from this agreement averaged €25m a year.
Entry to cone crushers market and development of high capacity models
Entry to the crushers market has been secured through a partnership with Minyu
Machinery Corporation (Minyu), a long established Taiwanese designer and
manufacturer of crushing equipment. Minyu cone crushers have gained a strong
reputation in their core aggregates market as superior, safe, dependable and
Weir has entered into an agreement to sell Minyu's existing range of cone
crushers to Weir Minerals' customers. This distribution agreement comes into
effect immediately. The two parties have also formed a joint venture,
majority owned and operated by Weir, to develop higher capacity machines
suitable for use in larger mine site applications. It is expected that the
new, larger cone crushers will be launched within three years.
Acquisition of innovative centrifuge technology
Weir has completed the acquisition of Aspir, a small Australia-based
centrifuge producer with innovative technology. Combined with Weir's existing
screens and hydrocyclones portfolio, Aspir centrifuges enable Weir to provide
packaged minerals classification solutions.
The combined upfront cost of these agreements is £7m with a similar amount
expected to be invested over the next three years.
Weir Chief Executive, Keith Cochrane, said, "These agreements will extend our
addressable market by around £750m and represent the logical next steps in our
growth strategy in minerals processing, providing access to attractive markets
that we know well and can benefit from our capabilities and technology. With
comminution products exposed to the same attractive aftermarket trends as our
existing mill circuit portfolio, the Group can leverage its unrivalled service
network as we provide customers with market leading innovative solutions."
Contact details: The Weir Group PLC
Andrew Neilson, Head of Corporate Affairs & Tel: + 44 141 308 3750
Jonathan Milne, Group Communications Tel: + 44 141 308 3781/ + 44
Brunswick Group Tel: + 44 207 404 5959
Patrick Handley / Will Carnwath
About the comminution process and HPGR technology
Comminution is the first stage of minerals processing through which solid
materials are reduced in size through crushing and screening before being
passed through the "mill circuit" where copper, iron ore and other minerals
are refined into raw commodities. In minerals processing, different
combinations of crushers and mills can be deployed in the process circuit,
dependent, for example, on ore characteristics such as rock size, hardness and
HPGR technology is of increasing importance in the mining industry as an
energy efficient comminution solution. Originally developed for cement
processing, HPGRs, often in combination with secondary cone crushers, are
seeing increasing utilisation in the mining industry as a replacement for the
conventional SAG mill, offering significant benefits in terms of consumption
of energy and consumable parts, as well as superior crushing performance. KHD
is an originator of HPGR technology.
About Weir Minerals
Weir Minerals is the global leader in the provision of slurry handling
equipment and associated aftermarket support for abrasive high wear
applications used in the mining and oil sands markets. The division's
leadership position is reinforced by materials development carried out at
research centres worldwide and a leading presence in key mining markets, with
more than 100 service facilities providing rapid customer support. The
division achieved revenues of more than £1.3bn in 2012.
About The Weir Group PLC
Weir, a FTSE 100 company founded in 1871 and headquartered in Glasgow,
Scotland, is a global provider of engineering solutions to the minerals, oil
and gas and power sectors. Our commitment to engineering excellence, research
and customer focus extends equipment wear life and operational capability in
some of the world's most challenging environments.
Weir is committed to going where our customers go, with a worldwide network of
around 200 manufacturing facilities and service centres. The business has a
presence in more than 70 countries, with over 14,000 staff around the world
working in three divisions; Minerals, Oil & Gas and Power & Industrial. Weir's
customer base includes the world's largest mining houses, major oil services
businesses and nuclear and conventional power generation companies.
Annual revenues were more than £2.5 billion in 2012, of which more than half
came from the provision of services and aftermarket support. Emerging markets
contributed over forty percent of overall Group orders in 2012.
See www.weir.co.uk for further information.
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: The Weir Group PLC via Thomson Reuters ONE
Press spacebar to pause and continue. Press esc to stop.