GE closes Industrea deal in Australia to expand mining offering globally
BRISBANE, AUSTRALIA -- GE Mining today announced that it had finalised the purchase of mining equipment manufacturer, Industrea Ltd.
The $700 million transaction, which includes equipment manufacturing and servicing operations in Australia and China, allows GE Mining to expand its product and service offering to bring more efficient, high productivity, and low emission equipment to its mining customers globally.
Industrea Ltd is a provider of safety and productivity-enhancing mining equipment, with more than 700 employees across seven Australian locations, and a significant presence in China. It will form part of the global GE Mining business, headquartered in Brisbane.
GE Transportation President and CEO, Lorenzo Simonelli said: “GE has been helping Mining customers solve their challenges for over 50 years with heavy-haul locomotives, off-grid power generation, water treatment and a suite of industrial solutions. Australia is a natural home for the global headquarters of GE Mining because of the local expertise and proximity to the industrial-growth customers of resource-rich nations.
“Through Industrea, our facilities in Australia and China are manufacturing mining equipment for the world.
“Industrea’s products, such as its underground flameproof and explosion-proof vehicles, are highly regarded in the mining industry and will complement our existing product lines to provide the technology our mining customers need to conduct their business more efficiently, safely and cost effectively – in some of the most challenging environments around the world,” he said.
Mr Simonelli said Industrea was a natural fit in GE’s existing transportation portfolio, which included locomotives and railway infrastructure, and motorised drive systems for mining trucks and drills.
“We already have a strong presence in Australia - 70% of heavy-haul locomotives in the Pilbara region are GE locomotives – and we are constantly developing ways to improve lifecycle costs and cost per tonne for miners through more efficient transport of materials.
For example, our GE Evolution Series locomotives reduce emissions by 40% and cut fuel bills for our customers.
“GE’s experience in battery and hybridisation technologies, its propulsion system offering and global distribution capability will help us expand the GE Industrea business,” Mr Simonelli said.
Mr Simonelli said he expects GE Mining to grow its global business to $5 billion over the next few years.
GE Mining CEO, Geoff Knox, said this acquisition demonstrates confidence in the underlying demand for resources, which would remain sound over the coming decades as urbanisation and growth in energy demand in emerging economies continues.
“Locally, Australia is in the right place at the right time to benefit from the Asian Century and productivity is critical to how we realise this opportunity.
“Productivity is the number one issue facing mining at present. This acquisition further strengthens our capability to solve the toughest challenges of our mining customers, helping to increase their productivity and efficiency across areas as diverse as water treatment, energy generation, transportation and finance,” said Mr Knox.
President and CEO of GE Australia & New Zealand, Steve Sargent, said this acquisition marks the largest addition to the GE industrial portfolio in Australia and forms a critical element in its strategy to grow manufacturing, services and skills in the region.
“Through our acquisition of Industrea, we are making a strategic investment in establishing our first manufacturing footprint in Australia and increasing our high-end engineering base in this region by 50 percent,” said Mr Sargent.
GE Mining’s portfolio of products and services allow miners to:
- Generate, distribute and convert power more efficiently and at a lower cost;
- Manage water quality, usage and wastewater runoff more effectively; and
- Improve productivity through more efficient transportation of materials and deployment of advanced software monitoring systems.
The Industrea Ltd acquisition follows GE’s recent purchase of underground mining equipment manufacturer, Fairchild International, in the US.
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About GE Mining
For more than half a century GE (NYSE: GE) has been solving the world’s toughest mining challenges. GE’s newest business, GE Mining, a unit of GE Transportation is dedicated to transforming the mining industry by doing what GE does best – developing leading technologies to build, power and move the world. As global demands for energy and raw materials continue to grow, mining companies face ever-increasing challenges to bring these resources to market. To help mines achieve success, GE Mining delivers innovative solutions for the most critical requirements of power, water and productivity.
GE Mining delivers solutions such as power generation and distribution systems for reliable and readily available electricity as well as water treatment systems for filtration, desalination and reuse. GE Mining also provides productivity solutions including components and systems for crushing, grinding, conveying and hoisting; service expertise in turnkey systems development; optimization software for monitoring and controlling remote operations; and electric-drive systems for mining vehicles and underground mining equipment.