Metso is investing in the development of its foundry capacity in Vadodara, India. The initial investment includes the acquisition of the property and foundry assets of a privately owned foundry project, Mega Cast. Metso expects to invest a total of approximately EUR 25 million to purchase the assets and to develop the foundry by 2020. With this investment Metso is responding to the global market demand by increasing production capabilities in cast wear parts for the aggregates and mining industries.
“This investment fully aligns with our profitable growth strategy. It further expands our global manufacturing footprint in foundry products, improving our operational capabilities and allowing us to meet our customers’ growing needs both in terms of availability as well as reduced lead times,” says Sami Takaluoma, President, Minerals Consumables business area at Metso. “We are continuously investigating new ways to develop our supply capabilities through our own manufacturing facilities as well as through our supplier network.”
The foundry development will begin as soon as the acquisition of the foundry assets has been completed. The first product deliveries from the Vadodara foundry are expected by the end of 2019 and the production will ramp up quickly in 2020. The new foundry will be built to follow Metso’s sustainability and quality principles.
Metso to divest its grinding media business to Moly-Cop
Metso has also signed an agreement to divest its grinding media business to Moly-Cop, a portfolio company of American Industrial Partners. The transaction comprises the sale of Metso Spain Holding, S.L.U, including operations in two locations with around 80 employees in Spain (Bilbao and Seville). The estimated turnover of the business in 2018 was approximately EUR 60 million. The value of the transaction will not be disclosed.
Moly-Cop is the leading global manufacturer of grinding media used primarily by global copper, gold, and iron ore producers to break down ore in the primary phase of mineral concentration. Moly-Cop was acquired by American Industrial Partners in January 2017.