Metso divests its operations in Vereeniging

This follows Metso’s decision to close the Isithebe foundry last year. The company had previously closed its brass foundry in Vereeniging.

Mining OEM specialist Metso, which merged with Outotec in 2019, will discontinue its pumps, spare parts, consumables and repair services facility.

Consultations evaluating the closure or other alternatives related to former Metso operations in Vereeniging, South Africa, have been concluded. The consultations, initiated by Metso in March 2020, have resulted in the decision to divest the fabrication, machining and assembly operations and close or rearrange the rest of the operations.

“We carefully evaluated all opportunities, with the target to find the best possible option for our customers and employees. Approximately 110 employees will continue with the new local owner in the spare parts manufacturing and repair operations,” says Sami Takaluoma, President, Consumables business area at Metso Outotec.

“To ensure the best value, availability and quality to our customers, the mill linings production as well as pump assembly operations will be transferred to our other manufacturing units with flexible global service capability. We will continue to have some field service and engineering specialists in Vereeniging to ensure a sustainable transition as well as uninterrupted service to our customers,” says Takaluoma.

The unit in Vereeniging has provided pumps, spare parts, consumables, and repair services for the mining industry. The unit has had approximately 200 employees. The decisions made on the Vereeniging site operations are not related to the Metso Outotec combination.

As part of this same initiative, during the second half of last year, it closed a foundry in Isithebe, KwaZulu-Natal, which resulted in the loss of approximately 200 employees, as well as a rubber and poly-met factory in Ersmark, Sweden. The company has, however, opened a new consumables manufacturing plant in Lithuania.

The company has also announced that it was closing a consumables factory in North Bay, Canada, as part of a restructuring of its rubber and poly-met supply chain. Production there will be ramped down by the end of the first half of 2021, with the closure impacting 65 employees.

Metso Outotec is a world-leading industrial company offering equipment and services for the sustainable processing and flow of natural resources in the mining, aggregates, recycling and process industries. With the company’s unique knowledge and innovative solutions, it helps its customers improve their operational efficiency, reduce risks and increase profitability. Metso is listed on the Nasdaq Helsinki in Finland and employs over 14 000 people in more than 50 countries.