The fate of international longwall equipment manufacturer, Long-Airdox, is expected to be known this month as bidders for the company are whittled down to the seriously interested. Currently owned by the very private The Marmon Group, the sale mirrors the general consolidation of coal producers currently occurring worldwide.
UK based Ken Mackie, Long-Airdox director of corporate development, said the company recently underwent major restructuring and streamlining resulting in a truly global company with international manufacturing divisions, strategically positioned in various locations. He said the company was never in a stronger position, despite one of the worst depressions in the international mining sector. Importantly, Marmon's investment in restructuring the company means that the new owner will not need to undergo this difficult and expensive process.
"The work that has been done in the reduction of capacity has placed the company in a very healthy position for the future," Mackie said.
In the future, Mackie believes the drive to reduce costs among producers will see a shift in emphasis, which will impact on equipment suppliers.
Cost reductions are "being achieved by greater productivity from equipment, greater reliability, and longer times between overhauls. Therefore, although we're seeing a 1.5% to 2% increase in coal production year to year, there will be a reducing number of capital sales in equipment. More consolidation will occur and there will be a move to value-added products."
Long-Airdox is the biggest seller of shearers in Australia, dominates the battery vehicle market in the USA, and is positioned to introduce these into Australia and China, and is developing a strong market presence with mobile coal preparation plants in China.
Interest in the company has been high but has now reduced to a handful Mackie said. Sales presentations to interested parties, believed to include competitor Joy and DBT, are expected to be concluded by month end.
