Global mining supply company ME Elecmetal, headquartered in Chile, says it has bought one of Africa’s leading foundries - the Prima Foundry in Benoni, Gauteng, South Africa.
This is a significant milestone for ME Elecmetal, which has a 107-year history in the mining industry, with sales in more than 40 countries. ME Elecmetal has seven metallurgical plants located around the globe – in Chile, US, Peru, China and Zambia. It has a 134000 ton foundry manufacturing capacity. It has a further commercial presence in over 40 countries.
ME Elecmetal said in a statement on Wednesday that the decision to acquire the Prima Foundry, a family-run business, specialising in the production of engineering castings for the mining industry, was part of the company’s overarching vision of expanding ME Elecmetal’s ability to provide integral solutions to mining operations throughout the world.
“The integration of the Prima Foundry into ME Elecmetal’s global operations is a strategic milestone for the company and a significant vote of confidence in the management and staff of the Prima Foundry, as well as it is for the broader investment case in South Africa,” it said.
ME Elecmetal’s chairman, Baltazar Sánchez, said: “We are confident that ME Elecmetal’s integration of the world-class Prima Foundry into our global footprint will enable us to support the sustainable growth and development of the mining sector in South Africa, Africa and beyond.”
Keith Price, Prima chairman, said: “Prima has been a family business since 1937. Now, in its 88th year of operation, the family is excited to be part of a new chapter unfolding together with ME Elecmetal. We view this as a positive development for the South African industry and believe it to be a great opportunity for Prima and its employees moving forward.”
ME Elecmetal said it was committed to the long-term success of ME Elecmetal Prima and to helping grow South Africa’s and Africa’s industrial and mining sectors.
“To this end, the newly formed and integrated ME Elecmetal Prima will draw on the experience, expertise and skills of both companies to grow and expand the production levels at the foundry. The foundry will supply steel and manganese liners for use in mining processes principally in South Africa and the continent, but also to other global markets,” it said.
ME Elecmetal said its global expertise and commercial capacity would help ensure that this growth strategy was realised in line with mining customer needs across the world.
“ME Elecmetal looks forward to strengthening its presence in South Africa and to play a role in helping to drive economic growth and job creation in the country. We look forward to engaging with various stakeholders to help make sure that this new venture is a success for all involved,” said Sánchez.
BUSINESS REPORT