Modern Quarrying January-February 2015

AROUND THE INDUSTRY SUPPL ER FOCUS

Trio acquisition adds value to sand and aggregate sector The recent acquisition of Trio Engineered Products by The Weir Group provides important opportunities and advantages for both southern African distributor Pilot Crushtec International and the group in terms of additional product and market opportunities. In this exclusive ar- ticle, Modern Quarrying looks at the reasons for this acquisition.

“ I n terms of the acquisition itself, we will remain with the original dis- tributor, Pilot Crushtec International,” confirms Gavin Dyer, regional managing director for Weir Minerals Middle East and Africa, adding that Weir Minerals Africa (WMA) is represented mainly in the min- erals space, whereas Pilot Crushtec Inter- national has considerable experience in the sand and aggregate sector. “Instead of creating such a route from market to scratch, we decided to capitalise on the mutually beneficial relationship that is al- ready in place.” Sandro Scherf, managing director of Pilot Crushtec International concurs. “We are thrilled that the brand will now have the backing of a major international company like The Weir Group. It will only improve and build upon our own relation- ship with Trio as the original equipment manufacturer (OEM),” he says. Both MDs have toured each oth- er’s facilities. “We have been suitably impressed by what we have seen,” Dyer says, “and are looking forward to other synergies between the two businesses.

“Since the announcement, our companies have already identified certain market opportunities where we would be able to leverage a combined suite of products.” Pilot Crushtec International will still source products from Trio Engineered Products of the US. According to Mike Burke, former owner of Trio Engineered Products, Trio has a longstanding relation- ship with Pilot Crushtec, which has suc- cessfully taken the Trio products tomarket in Southern Africa. “I have no doubt that this acquisition will positionWeir Minerals to offer comprehensive solutions to com- minution clients, whether aggregate or ultimately mining.” WMA will continue supporting that arrangement and add value to it wher- ever possible. “We have a best-in-class geographic footprint, so if the syner- gies are as we envision, Pilot Crushtec International will have an instant spring- board,” Dyer says. While the strategic approach to the acquisition agreement is ‘business as usual’ for both companies, Dyer explains that he and Scherf will plan a collective

Gavin Dyer, regional managing director, Middle East and Africa for Weir Minerals.

approach to market in order to maximise opportunities. “For example, we already have a footprint in the Middle East in terms of the oil and gas sector, so our ability to be able to service that growing market and again add value to what Pilot Crushtec International is doing in that space, will be significant.” Commenting on the acquisition of Trio Engineered Products at a time in which global mining and construction industries are facing an array of difficul- ties, Dyer says: “One of the advantages of being part of a financially stable group like Weir is that, during any downturn, it is ideally positioned to capitalise on any upswing. Smaller companies just do not have the same degree of flexibility or depth of resources to be able to do that.” Such exposure to a broader market also lessens the impact of any downturn. “I am sure we are going to go through business cycles where construction is depressed and mining is in a boom,” he says. “When that happens, we will be able to take Pilot Crushtec International into that space with us. At the moment the situation is reversed, with mining in a downturn and construction, while not nearly as depressed, also lagging.” Scherf says that while the over- all market remains challenging, “we

Sales, marketing and engineering director of Weir Minerals Africa Rob Fawcett is pictured with Pilot Crushtec representatives at WMA’s Alrode facility.

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MODERN QUARRYING

January - February 2015