Tag Archive for 'Mining'

Komatsu to acquire U.S. mining equipment manufacturer Joy Global

Komatsu logoKomatsu Ltd. (Head office: Minato-ku Tokyo, President and CEO: Tetsuji Ohashi, hereafter “Komatsu” or “Company”) announced today that it has signed a definitive agreement with Joy Global Inc. (Head office: Wisconsin, USA, CEO: Edward L. Doheny II, hereafter “Joy Global”, NYSE), a leading manufacturer of surface and underground mining equipment, under which Komatsu America Corp. (Head office: Illinois, USA, Chairman and CEO: Rodney Schrader, hereafter “KAC”), a wholly-owned subsidiary of Komatsu in the USA, will acquire 100% ownership of Joy Global (hereafter “Acquisition”). The Acquisition is expected to close in mid- 2017, subject to the approval of shareholders of Joy Global and the receipt of necessary regulatory approvals under laws in relevant countries.

Purpose of the Acquisition

Komatsu embarked in April on a mid-range management plan for the next three years (2016-2018) under the slogan “Together We Innovate GEMBA Worldwide – Growth Toward Our 100th Anniversary (2021) and Beyond”. The Acquisition is in line with the growth strategy of the plan which calls for the Company to strengthen the core mining equipment business in an effort to achieve sustainable growth.

Joy Global is a worldwide mining machinery and services company founded in 1884. Through its leading brands — P&H, Joy and Montabert – Joy Global manufactures and services advanced original equipment and parts for underground and surface mining applications, as well as material handling systems and components for a variety of applications, products that complement existing Komatsu products. The company’s integrated technology, services and solutions are a critical component of operations in a variety of commodity markets including energy, hard rock and industrial minerals. The company operates globally and generates an annual revenue of 3,172 million US dollars (approximately 333 billion yen at @105yen/U$).

Komatsu has engaged in the mining equipment business since its foundation in 1921. In the 1990s the Company expanded by acquiring selected mining equipment manufacturing and distribution businesses operating in major mining regions. Today, Komatsu’s annual revenue of 450 billion yen from mining equipment business is generated by surface mining equipment only, as the Company’s portfolio does not include equipment for underground mining. Further, the Company’s product lineup does not include super large-sized loading equipment for surface mining.

Demand for mining equipment has declined dramatically from the peak, reflecting economic slowdown in emerging countries and low commodity prices. Over the long term, however, the mining equipment business is projected to grow, driven by population growth and rapid urbanization around the world. In terms of mining techniques, economic rationale will call for use of larger equipment in surface mining as well as further development of underground mining.

Joy Global and Komatsu’s product lines will integrate well, expanding options for customers worldwide, as Komatsu can now offer the underground mining equipment and super large-sized loading equipment of which Joy Global is a leading provider. Both companies value a direct sales and service approach and will continue to engage with customers globally. Merging manufacturing technologies and linking products through Komatsu’s fleet management system will further capabilities on both sides to directly engage with customers to optimize machine performance and enhance automation for safety and productivity gains. Komatsu will continue to offer Dantotsu products, Dantotsu services, and Dantotsu solutions to our customers to jointly create innovation in mining operations.

Benefits of the Acquisition

The corporate culture at Joy Global values pursuit of safety, improvement of customer productivity ($/ton reduction), and the drive for innovation. This is very similar to the corporate culture at Komatsu. Komatsu and Joy Global also share the approach of offering “direct sales/services” to customers, engaging with them directly to address issues at their jobsites. The Acquisition of Joy Global, which shares similar cultures, values and strategies with Komatsu, is expected to bring Komatsu the following two benefits.

(1)Complementary product lineup

Joy Global’s lineup of surface mining equipment includes rope shovels, super large wheel loaders, draglines and drills which Komatsu does not offer. Joy Global’s lineup of rope shovels and super large wheel loaders pair well with the super large electric dump truck Komatsu manufactures and will generate synergies in sales and services. In addition, Joy Global manufactures underground mining equipment, another area Komatsu has not engaged in. With the Acquisition, Komatsu will become a meaningful participant in underground mining as well. The Acquisition will allow Komatsu to offer Dantotsu products to customers in both surface mining and underground mining businesses.

(2)Stronger Dantotsu solution offerings

Joy Global places priority on providing solutions that enhance safety and productivity of customer operations. For example, JoySmart Solutions leverages the Internet of Things to connect customer products with experts using data and analytics to improve mine performance. Komatsu also engages in the improvement of safety and productivity with its Autonomous Haulage System, mine fleet management systems and KOMTRAX Plus, which all serve to visualize jobsite operations. Data obtained from IoT-based mining equipment and systems will be connected and used through the open platform of Komatsu and this will bring synergies in providing Dantotsu solutions to customers.

Structure of the Acquisition

This Acquisition is structured as a reverse triangular merger between Joy Global and a wholly owned subsidiary KAC has established for the purpose of the Acquisition (“Acquiring Subsidiary”). Joy Global will be the surviving company and the shareholders of Joy Global will receive the cash payment as described below. At the same time, shares of the Acquiring Subsidiary owned by KAC will be converted into outstanding shares of the surviving company, making the surviving company the wholly-owned subsidiary of KAC. The Acquisition is subject to approval by the meeting of shareholders of Joy Global, receipt of necessary regulatory approvals under the applicable laws in relevant countries, and the satisfaction of other customary closing conditions stipulated in the Acquisition agreement. Under the Acquisition agreement, Komatsu guarantees the performance of obligations of KAC and the Acquiring Subsidiary.

Komatsu will acquire Joy Global for U$ 28.3 per share (total of approximately 2,891 million US dollars * (approximately 303.6 billion yen at 105yen/U$)). Komatsu plans to finance the Acquisition through funds on hand and bank loans and does not plan to increase capital at this stage.

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Future outlook

After the Acquisition is complete, Joy Global will become a consolidated subsidiary of Komatsu. The Company will make a disclosure of the impact of the Acquisition on its performance in a timely fashion as needed after the close of the transaction.

As the Acquisition is expected to close in or after April 2017, the Acquisition will have no impact on the results and performance of Komatsu for the fiscal term ending March 2017.

Information in the news releases is current on the date of the announcement and is subject to change without notice.

To view the complete release click here:

Caterpillar Announces New Group President Vice President Denise Johnson to Replace Retiring Group President Ed Rapp

Caterpillar Vice President Denise Johnson Elected Group President Effective April 1, 2016

Caterpillar Vice President Denise Johnson Elected Group President Effective April 1, 2016

Caterpillar Inc. announced today that the company’s Board of Directors has elected Denise Johnson, currently vice president with responsibility for the Material Handling & Underground Division, as group president of Resources Industries. The appointment follows the recently announced retirement of Group President Ed Rapp.

“Denise leads one of the largest and most complex businesses in the company; her division makes products primarily for the mining, waste and construction industries and employs about 8,000 people in 14 locations spanning four continents. She has successfully managed costs during the mining downturn and been deeply involved in restructuring within Resource Industries, all while gaining market position for multiple products in her portfolio. Denise has accomplished these business results while also delivering outstanding safety and quality metrics,” said Caterpillar Chairman and CEO Doug Oberhelman. “Above all, Denise is a leader inside and outside of Caterpillar. Whether she’s engaging with employees, strengthening relationships with key mining customers or serving as a strong role model to recruit more female engineers, Denise consistently excels.”

Johnson joined Caterpillar in 2011 as the general manager of Caterpillar’s Specialty Products business unit where she had responsibility for nearly 20 facilities around the world. She came to Caterpillar after a 22-year career with General Motors, where she built deep expertise in operations and product management in a series of positions in the United States, Canada and Brazil. A year later, she was elected vice president of the Diversified Products Division with responsibility for industries including forestry, paving and on-highway trucks. In 2013, she became vice president of the Integrated Manufacturing Operations Division overseeing major operations in Caterpillar’s largest division at the time. She was named to her current role in 2014.

Johnson graduated from Michigan State University with a bachelor’s degree in mechanical engineering. She earned dual master’s degrees in mechanical engineering and business administration from the Massachusetts Institute of Technology. Johnson is a member of numerous outside boards including The Mosaic Company.

Her move is effective April 1, 2016. Johnson’s successor will be named at a later date.

Kawasaki — KCM, New Products And More

Kawasaki-KCM Kawasaki-KCM2

New Cat® 6015B Hydraulic Shovel Moves More Material at Lower Costs

Building on the robust and productive Cat® 5110B, the new 6015B Hydraulic Shovel delivers a productivity advantage over other 100-tonne shovels thanks to the most powerful engine in its class, a large standard bucket and payload capacity of 14.6 tonnes. The design translates to fast cycles and a pass match advantage over leading standard-equipped shovels in its class when loading trucks of 55, 65 and 90 tonne capacities.

The 6015B is equipped with a single Cat C27 ACERT engine that provides 606 kW of rated power. As with all hydraulic shovels, the greater the engine power, the greater the digging power and the faster the digging cycles. The large, 8.1-cubic-meter standard bucket, outfitted with Cat C70 hammerless GET, further boosts production capability. With the standard bucket, the 6015B is optimized to fill a Cat 773 truck in four passes, a 775 in five passes, and a 777 in seven passes. These truck models are commonly found in heavy construction, quarry/aggregate and small to mid-size mining operations across the globe.

Cat 6015B Hydraulic Shovel loads Cat 775G truckThe 6015B is currently available only in a backhoe configuration.

Efficient operation

Cat 6015B Hydraulic Shovel, left sideThe 6015B is both powerful and efficient. Caterpillar’s proprietary integrated engine control technologies, a boom float feature that regenerates boom oil for reduced engine demand, an oil cooling system that’s independent of engine cooling, and regeneration of swing energy via its closed-loop swing system, all increase fuel efficiency.

Cat automatic flow proportioning technology creates more efficient hydraulic pump utilization, reduced energy losses and increased fuel savings. Exclusive Cat Proportional Priority Pressure Compensating technology ensures that hydraulic flow is proportional, according to demands, so individual functions—boom, stick, and bucket—are automatically prioritized during simultaneous operations. This aids smooth, efficient operation and controllability. Pressure and flow compensation deliver only as much flow as needed. The result is reduced heat build-up and component wear.

Reliable performance

The 6015B is built upon the robust 5110B platform, proven durable and reliable. And the entire machine benefits from extensive use of proven Cat components, such as the engine, undercarriage and cab.

The 6015B front is sturdy and strong, yet light enough to promote fast cycle times. The boom and stick utilize high strength steel and rugged castings that are joined and thermally stress relieved for optimum structural life and resistance to impact and wear in difficult digging conditions. Box section design provides superior rigidity and strength, and heavy duty castings are used in high load areas to add exceptional strength and durability.

Providing superior stability, extending component life, and ultimately improving machine uptime, the 6015B swing system includes a unique cross roller bearing with sealed internal gearing, connected to an automatic lubrication system. Adding further to reliability, the undercarriage is a Caterpillar design that leverages proven Cat components.

A newly designed hydraulic filtration system has been incorporated into the 6015B design. A separate kidney loop provides continuous filtration and optimum oil cleanliness at all times, ensuring consistent oil cleanliness for dependable hydraulic system performance.

Safe and comfortable

The 6015B features well engineered access and egress with walkways for safe movement around the machine and an optional 45-degree powered access stairway. Wire and hose guarding facilitate safe maintenance. Numerous and optimally positioned lights, mirrors and E-stop buttons further improve safety.

The operator cab offers large, wide windows, which provide excellent all-around visibility of the work environment, contributing to the operator’s situational awareness during digging, loading and travel. Combined with multiple strategically positioned high-powered lights, and a heavy-duty wiper, good visibility is maintained in both dark and inclement weather conditions.

The cab is pressurized to keep dust out, and the climate control system is fully automatic, allowing for consistent in-cab temperature and operator comfort in any weather conditions. The controls are ergonomic with adjustable joystick console height, independent of the seat, to suit operator preference. And the electro-hydraulic controls provide sure, precise maneuvering.

 Cat technology and support

The 6015B incorporates advanced Cat technology solutions, such as MineStar, VIMS and Product Link for improved productivity, maintenance and equipment management. Like all Cat equipment, the 6015B is backed by the Cat Dealer Network with well-trained service technicians, unparalleled repair facilities and parts stocked around the world for fast service.

For more information visit: www.cat.com

Caterpillar Announces New Organizational Structure for Mining and Customer and Dealer-Facing Divisions; Focus on Innovation and Data Analytics Remains a Key Priority

UnknownBuilding on its 90-year history of providing unmatched product support around the world, Caterpillar Inc. (NYSE: CAT) today announced reorganization in its dealer and customer support divisions. These changes are designed to improve and speed the delivery of customer support while simplifying the way Caterpillar interacts with its global dealer network.

“These organizational changes will drive needed simplicity to the business, further enabling us to meet customer and dealer needs by becoming more nimble, lean and responsive,” said Rob Charter, Caterpillar group president with responsibility for Customer & Dealer Support. “Our dealers are the best in the industry when it comes to knowing and serving our customers. These changes will help Caterpillar increase accountability at the divisional level and continue to differentiate the Caterpillar business model from our competitors.”

The company is also placing added executive office emphasis on three strategic initiatives – data analytics, digital and innovation capabilities; Lean Transformation; and the Across the Table initiative. Having this additional, executive office focus complements the new structure of Caterpillar’s customer and dealer-facing divisions.

Mining Division Changes  

As previously announced, Chris Curfman, vice president with responsibility for Caterpillar’s Mining Sales & Support Division is retiring, effective December 31, 2015. His division will be integrated into the existing Global Mining machine business divisions. Bringing product, operations, sales and marketing organizations together in both the surface and underground mining applications aligns well with our customers and will also enable a more effective cost structure in a challenging mining environment.

The surface mining sales and support teams will join the Hauling & Extraction Division, which will be renamed the Surface Mining & Technology Division, led by Caterpillar Vice President Tom Bluth.

The underground mining sales and support teams will join the Material Handling and Underground Division, led by Caterpillar Vice President Denise Johnson.

Customer and Dealer-Facing Organizational Changes   

The company is reorganizing divisions across the company into a new structure that will improve efficiency and reduce complexity. This new organizational structure will enable the company to more quickly deliver on its previously announced Across the Table goals.

“Our team will be more responsive, agile and better positioned to work with our dealers as we serve our customers,” Charter said.

  • Distribution Services Divisions – the primary interface with our dealers, these divisions will remain but be reduced to two from three. The two groups will maintain sole responsibility for dealer development and performance, succession and continuity, along with portfolio management, operational excellence and Across the Table strategy execution.
    • Asia Pacific, CIS, Africa & Middle East Distribution Division, Vice President Raymond Chan – covers dealers in Asia-Pacific, CIS, Africa and the Middle East.
    • Americas & Europe Distribution Division, Vice President Phil Kelliher – covers dealers in North and South America and Europe.
  • Global Aftermarket Solutions Division, Vice President Nigel Lewis – new organization created to accelerate the growth of aftermarket sales and service solutions. This organization combines the aftermarket sales and marketing resources, with a focus on improving and growing aftermarket sales and service for Resource Industries, Construction Industries and Energy & Transportation, including Cat Work Tools and Cat Reman products.
  • Wear Components & Aftermarket Distribution Division, Vice President Doug Hoerr – new division that merges the design and manufacturing of components and aftermarket distribution into one division to enhance the company’s focus on components availability and inventory improvements. This organization will be closely aligned with the Global Aftermarket Solutions Division to ensure product offerings meet or exceed customer and dealer expectations.
  • Marketing and Digital Division, Vice President George Taylor – newly created division that builds on the current Analytics & Innovation Division. Taylor, who has also been named Caterpillar’s Chief Marketing Officer, and his team will establish a go-to-market strategy for the integration of data analytics, providing state-of the-art solutions and support for customers and dealers. In addition to the digital transformation of the dealer and customer experience, the division’s functions include global brand management, marketing, rental services and retail sales development.
  • Sustainable, Work Tools & Industry Solutions Division, Vice President Greg Folley – new division that brings together the sustainable businesses of Cat Reman and Caterpillar Safety Services with the company’s machine attachment business – Cat Work Tools (design and manufacture). The new division also includes two external sales groups, Cat OEM Solutions and Defense and Federal Products.

Construction Industries Update

In addition to these changes, the Global Construction & Infrastructure Division, led by Vice President Paolo Fellin, has added responsibilities. As part of the company’s move to improve its dealer and customer coverage model, the division will also assume sales responsibilities for work tools, industrial and waste, paving and forestry products, as well as responsibility for heavy rentals.

The above moves will be effective November 1, 2015.

 About Caterpillar
For 90 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. Customers turn to Caterpillar to help them develop infrastructure, energy and natural resource assets. With 2014 sales and revenues of $55.184 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company principally operates through its three product segments – Construction Industries, Resource Industries and Energy & Transportation – and also provides financing and related services through its Financial Products segment. For more information, visit caterpillar.com. To connect with us on social media, visit caterpillar.com/social-media.