1 October 2010
ABB South Africa, subsidiary of global power and automation technology group ABB, is to acquire the mine hoist related business of local manufacturer Coilmech from the owners of the company for an undisclosed sum.
ABB South Africa will add the business to its process automation portfolio for customers in the mining sector.
Mine hoists are used to transfer materials and people up and down mine shafts. These products are important for the upgrading and expansion of mining infrastructure and in assisting mines to use energy more efficiently.
“This acquisition forms part of ABB’s strategy to support the mining sector with local manufacturing, and demonstrates our commitment to the local market,” ABB South Africa CEO Carlos Pone said in a statement this week.
“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 South Africa will expand distribution of these solutions through its India, Middle East and Africa regional distribution channels and increase the product range. The business will also benefit from ABB South Africa’s black economic empowerment (BEE) credentials.
The Coilmech operation, based in Ekurhuleni, east of Johannesburg, employs approximately 30 people. The business will transfer to ABB’s new head office, logistics and manufacturing premises at Longmeadow, Johannesburg.
The acquisition is subject to customary regulatory approvals.
ABB South Africa, which is 20% owned by women’s empowerment company Wiphold, manufactures and supplies power and automation technology products and specialises in electricity infrastructure and industrial automation projects.
The company has manufacturing facilities in South Africa and employs more than 1 500 people.
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