Swedish steel maker SSAB has signed an agreement to acquire 51% of the shares of Perth-based G&G Mining Fabrication.
G&G Mining Fabrication specialises in the refurbishment, manufacturing and design of large fabrications for heavy earth moving equipment, with particular focus on backhoe, loader and face shovel buckets and service modules for the Western Australian mining industry.
The investment represents a significant advancement of SSAB’s strategy to grow its presence in the aftermarket for wear parts and service and to develop SSAB’s customer offering.
G&G enjoys a strong position within Western Australia, one of the world’s most significant mining regions in terms of production, where today end-users are demanding ever increased productivity through enhanced efficiency and extended asset life. G&G together with SSAB create natural synergies that will help fulfil the continuously increasing demands of the mining industry.
The ability to access SSAB’s extensive knowledge of how to best design and produce using Hardox wear plate will enable G&G to meet and exceed its customers’ requirements. G&G will also work towards becoming a certified Hardox Wearparts Centre.
“The joint development of more efficient mining buckets, using innovative designs and wear materials such as Hardox wear plates is a good example of how we will combine our strengths to deliver strong solutions to the mining industry,” said Richard Ladny, Chief Executive Officer at G&G in a statement.
By combining G&G’s end-user knowhow and its strengths in refurbishment, design and fabrication of mining earthmoving equipment with SSAB’s wear and material knowledge, G&G will become an even stronger player offering a competitive range of products and services.
The closing of the acquisition is subject to the satisfaction of various customary closing conditions.