OPERATIONS

Metso might close second South African unit

Metso is continuing the “streamlining” of its supply-chain and manufacturing footprint by evaluating the potential closure of its operations in Vereeniging, South Africa

Staff reporter
Metso’s unit in Vereeniging provides pumps, spare parts, consumables and repair services

Metso’s unit in Vereeniging provides pumps, spare parts, consumables and repair services

As part of this same initiative, during the second half of last year, the Finland-based industrial company closed a foundry in Isithebe, South Africa, as well as a rubber and poly-met factory in Ersmark, Sweden. The company is, however, opening a new consumables manufacturing plant in Lithuania this year.

According to Metso's 2019 financial review, the closures incurred total costs of €15 million (US$16 million), which were reported as adjustment items and had a negative impact on its Minerals business' operating profit last year.

The company has now initiated further consultations to evaluate the potential closure or other alternatives for the Vereeniging site in South Africa, which provides pumps, spare parts, consumables and repair services for the mining industry. The unit has about 200 employees.

At the recent Conexpo event in Las Vegas, US, Metso president and CEO Pekka Vauramo commented on the closures: "We are defining very cautiously and carefully what our footprint should be.

"We are looking at how efficiently we are able to produce in these places. Because we're producing identical products in many of these plants, we can easily compare what is the cost of producing certain cast items for example.

"Since we have so many of these factories, those sites where we either need to reinvest a lot in order to gain more productivity from plant, or that for other reasons have higher costs, they are the ones we will then end up closing."

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Magazine Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Magazine Intelligence team.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production

editions

Mining Magazine Intelligence Automation Report 2023

An in-depth review of operations using autonomous solutions in every region and sector, including analysis of the factors driving investment decisions