Engineering & Mining Journal

MAR 2013

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SUPPLIERS REPORT 'Metso LiuGong' brand. The joint venture company will also promote Metso's global track-mounted crushing and screening equipment in the growing Chinese market. Metso also intends to acquire 75% of Shaorui Heavy Industries, a Chinese midmarket crushing and screening equipment producer, and has an option to purchase the remaining 25% of the company later. In addition to enabling greater access to the Chinese mid-market equipment sector, Metso said the acquisition will allow it to offer a better product portfolio for penetrating new markets in Asia and Africa. Shaorui Heavy Industries is headquartered in Shaoguan, Guangdong province. It has 18 sales and services centers, as well as a manufacturing facility in southern China that is expected to complement Metso's manufacturing unit in Tianjin. The respective costs of the acquisitions were not publicly disclosed. In 2011, Chinese buyers were among Metso's biggest customers in terms of net sales, which totaled $1.01 billion. Metso said it estimates that the Chinese construction equipment market alone is estimated to reach $100 billion by 2016, driven by urbanization and infrastructure development, and offers great growth opportunities. Currently, Metso Group has more than 3,200 employees in China. Sandvik Mining Enters into Supplier Agreement with Anglo American Anglo American and Sandvik Mining followed the signing of a Global Framework Agreement (GFA) between the two companies—focusing on supply and lifetime support services for underground mining equipment—by holding the first Supplier Relationship Management (SRM) Workshop between the two companies last fall, according to Sandvik. "The GFA ratifies an understanding between the two companies on a global scale to extract as much value as possible from the relationship in the medium to long term," Sandvik Mining's Strategic Account Manager Andrew Main said. "This is part of Anglo American's supply chain initiative that aims to create additional value through more effective management of purchased materials and services. "There is mutual acknowledgement that both parties can benefit from consolidating supply chain agreements at a global and regional level, in a way that establishes a uniform mechanism and, as far www.e-mj.com Attendees at the first Supplier Relationship Management (SRM) workshop involving Sandvik Mining and Anglo American personnel, following finalization of a Global Framework Agreement between the two companies. as possible, standardizes administrative arrangements for the purchase of goods and services. Our future relationship with Anglo American will now be driven by a formal supplier relationship management plan globally," Main said. Anglo American's supply chain, through the implementation of its SRM program, has been shifting supplier engagement from a transactional relationship to a partnership approach. Sandvik Mining has been a long-time supplier of underground mining equipment, heavy mining equipment and plant processing equipment to Anglo American's global operations. Sandvik said an SRM arrangement has been informally in place with since November 2011, as the company's products proved competitive in total cost of ownership while measuring up to Anglo American's performance standards. Sandvik also is currently working in partnership with Anglo American on technology development and future mining innovation initiatives. Current focus areas are comminution of ore, in-pit crushing and conveying, various forms of automation, continuous hard rock cutting and energy-efficient technologies. By using the SRM approach joint Key Performance Indicators (KPIs) are agreed and managed by both parties. "The agreement will be guided by KPIs applying to a variety of different account teams," Main said. "These KPIs, cascaded down to the lowest level of our organization, will allow us to measure our performance very effectively. We'll be able to incorporate the resulting feedback at an executive level, something that Sandvik Mining believes is unique and will create focus in prioritized areas. For the first time, Sandvik Mining's account management has been formalized with a customer and we believe this is the start of an industry trend. "From Sandvik Mining's perspective, one of the biggest benefits of the GFA will be transparency—an opportunity to have the kind of visibility of the customer's business that will give us insight into brownfields and greenfields projects and technology roadmaps, enabling us to deliver on expectations by forecasting and to optimise our product development accordingly," Main said. "It will be a lot easier to do business with Anglo American, because the GFA has laid down the terms and conditions of our transactions and Sandvik Mining no longer needs to negotiate them," he said. CMS Cepcor Expands its Manufacturing Facilities CMS Cepcor announced that its U.K-based manufacturing subsidiary, Baguley Precision Engineers Ltd., has been transferred into its Precision Services division. CMS Cepcor is a leading European aftermarket manufacturer and supplier of quality replacement crusher spares and service for the quarrying, mining, demolition and recycling industries. Following recent investment for new premises at its Coalville, Leicestershire location to accommodate a new technical center, the company made the decision to transfer all Baguley personnel into the newly formed Precision Services division; subsequently relocating all machining services from Burton-on-Trent to the new technical center. The company said the new center, scheduled for formal commissioning in the first quarter of 2013, reflects substantial investment in new CNC manufacturing capability and will enhance manufacturing, inspection and repair functions to provide improved manufacturing efficiency. Capabilities include CNC, milling, turning, boring, slotting, grinding, drilling, pressing, welding, coordinate measuring, material testing and assembly. Technical Director Chris Sydenham said, "The recent transfer of Baguley into the Precision Services division, and our recent business expansion, will mark the beginning of a new manufacturing chapter for the company which will also provide further opportunities for our supply partners." MARCH 2013 • E&MJ; 79

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