International power and automation technology group ABB intends to expand its mining interests in South Africa with the acquisition of the mine hoist related business of local manufacturer Coilmech, for an undisclosed sum.
ABB plans to incorporate the acquisition into subsidiary ABB South Africa’s process automation portfolio for customers in the mining sector.
Mine hoists carry people and materials up and down mine shafts, and are currently in demand for the upgrading and expansion of mining infrastructure and helping mines to use energy more efficiently.
“This acquisition forms part of ABB South Africa's strategy to support the mining sector with local manufacturing and demonstrates our commitment to the local market,” said CEO Carlos Pone in a statement.
"Current and future customers will benefit greatly from ABB's electrical and mechanical integration capabilities, as well as from ongoing improvements in quality and performance arising from ABB's far-reaching research and development efforts."
ABB intends to increase the Coilmech product range and expand distribution through its India, Middle East and Africa regional distribution channels. The business will also benefit from ABB South Africa's black economic empowerment (BEE) credentials.
Twenty percent owned by women's empowerment company Wiphold, ABB South Africa manufactures and supplies power and automation technology products and specialises in electricity infrastructure and industrial automation projects.
Coilmech is based in Ekurhuleni, east of Johannesburg, and employs approximately 30 people who will transfer to ABB's new head office, logistics and manufacturing premises at Longmeadow, Johannesburg.
