Author: yinghui

A major international quarry plant manufacturer has announced plans to merge with a global lifting equipment supplier – a move that could potentially lead to improvements in locally distributed machinery.
The boards of Terex Corporation and Konecranes have agreed on terms for a proposed merger, which would lead to the formation of a single combined entity, Konecranes Terex.

Konecranes is a Finland-based group of international lifting businesses, which operates from 600 locations across 48 countries.

The new merged company would be incorporated in Finland, with Terex shareholders owning approximately 60 per cent and Konecranes shareholders owning the remaining 40 per cent.

It is estimated the combined entity would have $USD10 billion ($AUD13.8 billion) in revenue and $USD845 million ($AUD1.2 billion) in earnings before interest, taxes, depreciation and amortisation. The merger is expected to generate at least $USD119 million ($AUD163.7 million) in annual operational synergies within three years.

Scaling up
In addition to improving the companies’ financial standing, the corporate union is expected to yield a number of operational benefits. Chief among these is increased global scale, which is expected to improve competitiveness, allow for enhanced technological research and development, and result in a broader presence in key industry sectors through the companies’ complementary geographic profiles.

“With a focus on lifting and material handling solutions, Konecranes Terex will be in an excellent position to deliver enhanced growth in revenue and margins through several strategic advantages, including significant cross-selling opportunities,” Konecranes chairman Stig Gustavson commented. “Together, we will have the opportunity to expand what Konecranes and Terex have built and become even stronger in the future.”

Terex CEO Ron DeFeo added, “We [Terex] have a deep respect for Konecranes and look forward to joining forces with them to build a stronger and more diverse company that will be in an excellent position to succeed in a dynamic and highly competitive global industry.”

Ron DeFeo will be appointed as CEO of the combined company, with Gustavson to assume the role of chairman. Terex and Konecranes’ respective head offices in Connecticut, US and Hyvinkää, Finland will be retained as the new company’s dual headquarters.

Local impact
Terex is a global lifting and materials handling solutions company that services various industries, including the quarrying, mining, construction and infrastructure sectors. It owns several companies that supply the Australian quarrying industry, including crushing and screening plant manufacturers Powerscreen, Terex Finlay and Terex Minerals Processing Systems (MPS), and minerals washing solutions provider Terex Washing Systems.

Within Australia, Terex Finlay mobile plant and Terex Washing Systems products are available through OPS Screening and Crushing Equipment in Western Australia and the Northern Territory, and through Finlay Screening and Crushing on the east coast of Australia, including South Australia and Tasmania. Terex MPS is responsible for the provision of fixed and modular crushing and screening plant to the Australian market and Lincom Group is the local distributor for Powerscreen.

While it is still early days for the merger (it is subject to various regulatory approvals and must gain the support of both Terex and Konecranes’ shareholders), it is possible the resultant increase in Terex’s resources could lead to flow-on benefits for the local quarrying industry by way of improved equipment and service.

The merger is expected to reach completion in the first half of 2016.

Deswik has launched a new optimisation software tool for dozers and draglines.

Dubbed Deswik.DD, it is a sectional design and analysis tool for design, optimisation and communication for dragline or dozer push operations.

According to Deswik it allows operators to analyse and refine dragline and dozer push designs, in turn reducing running costs.

Time savings of up to 80% in overall planning time can then be reinvested in scenario analysis to find the most efficient operating plan.

It allows for the automating of repetitive section operations, time as well as integration with upstream design and reserving tools, downstream scheduling tools, and 3d-DigPlus, the leading material movement simulation package from Earth Technology.

Ian Neilsen, Deswik senior consultant, dragline engineer, explained that the area is “an engineering discipline that has seen little improvement in 15 years, and yet is a key link in the planning of many mines around the world”.

In designing this tool operators can now deliver automation of section operations both along strike and down dip, in addition to manual operations; eliminate cumbersome spreadsheeting and manual transcription of results, integrating with 3d-DigPlus; simulation with 3d-DigPlus, providing a seamless user experienc; and integrate with production scheduling so the impacts of design updates are understood immediately.

“Now that the boom times are over, we are seeing a resurgent emphasis on a fundamental approach to improving mine operations, and have built this tool with optimisation as a clear focus,” he said.

Deswik added that future releases are focusing on deeper functional integration and improving all of the frustrating and unproductive steps in best practice design and analysis of dragline and dozer push operations.

We’ve updated the Australian mine map, showing the all the operating mines in Australia, and who runs which mine, and what they mine.

Click here to see the latest Mine Map.

An international quarry equipment supplier has joined forces with a reputable New Zealand quarry engineering company.
New Zealand-based quarry engineering company Rocktec is the latest distributor to join Terex Minerals Processing Systems’ (Terex MPS) global dealer network, which already spans the Americas, Europe, Africa, the Middle East, Asia and Australia.

Terex MPS global director Simon Croker said the company was delighted with the addition. “This is a great opportunity for us to work with this highly experienced business to expand and strengthen our foothold in New Zealand as a crushing and screening solutions provider,” he said. “We are sure that the excellent reputation that Rocktec have for service and support will also enhance the customer experience.”

New Zealand is not a new market for Terex MPS but John Flynn, the company’s market area director for Australia and New Zealand, explained that the supplier had identified value in renewing its focus in the region and increasing the level of support available to its New Zealand customer base.

He added that Rocktec was well positioned to help Terex MPS achieve these goals, stating, “Rocktec is a well-established supplier to the quarry industry with specialist knowledge of the New Zealand quarry market and a high degree of rock processing expertise.”

Working hand in hand
Rocktec sales and marketing manager Jason Tapper said Terex MPS was “an excellent fit” for the business, which engineers and manufactures its own original quarrying equipment for the New Zealand and Australian markets.

“Our decision to distribute for Terex allows us to provide products that supplement and complement our own product offering,” he said. “The two companies work hand in hand. We can now supply additional plant beyond the original equipment we manufacture to provide a complete package for our quarry customers.”

The distribution deal came into effect earlier this month, and Rocktec exhibited the new Terex Cedarapids LJ-TSV6203 vibrating screen at the recent QuarryNZ conference in Hamilton from 15 to 17 July.

Founded in 1991 by the developers of the Barmac vertical shaft impact crusher, Rocktec is now owned by the Southern Cross Engineering Group. In addition to its Matamata-based head office and manufacturing plant in New Zealand, the company has a Brisbane office and distributes its original quarrying equipment worldwide through an international dealer network.

Terex MPS is a supplier of crushing and screening plant – including modular and portable equipment – that encompasses the Cedarapids, Simplicity, Canica and Jaques brands. It is part of the Terex Corporation, a global lifting and materials handling solutions company that services various industries, including the quarrying, mining, construction and infrastructure sectors.

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Bradken chairman Nick Greiner and managing director Brian Hodges, who says the string of overtures from outsiders in the past 13 months had been frustrating to deal with at the same time as the company responded to a sharp downturn in the mining cycle.
Photo: Dean Osland Bradken chairman Nick Greiner says the beleaguered mining services group’s share price has “overreacted” to the company’s recent woes, as it entered into 60-day talks with Chilean industrial group Sigdo Koppers to explore a merger with its grinding media group, Magotteaux.
As revealed by Fairfax Media on Thursday, CHAMP Private Equity teamed up with the Chilean firm to inject $70 million into Bradken via redeemable convertible preference securities, preventing it from breaching its debt covenants.
The company also struck a deal with its lenders to lift the company’s gearing covenant to 3.5 times until December 31, giving the company valuable breathing space as it works to complete a restructure and commence the merger talks.
Investors pushed the company’s share price down to its lowest level in six years. In morning trading, the stock slid 15 per cent to $1.46, the lowest it has traded since March 2009, before closing down 11.3 per cent to $1.52.
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The mining consumables group once had a market capitalisation of $1.6 billion, when it was trading at just under $15 a share in 2007.
Mr Greiner said Bradken had eyed off a deal with Magotteaux for almost a decade.
“Magotteaux has been one of the companies, and I have been around for 10 years, that has been on our list … of acquisition targets,” Mr Greiner told Fairfax Media.
“It makes overwhelming commercial logic to put them together. We actually like the fact that there is some diversification away from mining … the world is changing and we think this is the sort of proposal that makes sense because it gives you serious scale and diversification.”
The potential merger is the latest in a long line of offers, of gradually decreasing values, the company has fielded in the past year.
In August 2014, Pacific Equity Partners (PEP) and Bain Capital offered $6 a share before reducing the offer and eventually walking away from it due to financing issues. PEP returned in April, this time partnering with Koch Industries, with a $2.50-a-share offer, which Bradken rejected on the basis it was “opportunistic”.
Mr Greiner said the recapitalisation with Sigdo Koppers and CHAMP, which bought and sold the company more than a decade ago and counts Mr Greiner as a member of its advisory board, and the potential merger with Magotteaux, presented a better option.
“What remains to be worked out is the extent of the future profitability of a combined business and how much Bradken shareholders can get in terms of value. But everyone, in terms of SK, realises we are looking at a value that is very clearly above the $2.50 [offer],” he said.
“PEP and Koch know my number and if they come back and it’s an attractive price it is perfectly obvious what the board will do.”
The company had $433.8 million net debt at December 31 and was guiding towards tough trading conditions in the second half. Bradken said it expects full-year EBITDA to fall between $136 and $138 million, with net debt of $420 million, prior to the investment by CHAMP and Sigdo Koppers. It also flagged a non-cash impairment charge of $135 million to $145 million.