The Weir Group PLC : Acquisition

                       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 
efficient products.

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
                                                 7713 789536
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
moisture content. 

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 for further information.


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Source: The Weir Group PLC via Thomson Reuters ONE
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