Two of South Africa's most global companies have formed a strategic alliance
to unlock significant new opportunities for each other in the mining sector.
International industrial brand manager Barloworld and Anglo American
subsidiary Boart Longyear will combine to offer a total solution to the
equipment needs of the mining industry in southern Africa.
Heads of agreement cementing the alliance were signed by Barloworld CEO Tony
Phillips and Boart Longyear group managing director Paul Brunner at
Barloworld's head office in Sandton today.
Barloworld, in partnership with Caterpillar, has been the market leader in
the supply of equipment to the open-cast mining sector for over 70 years and
has an unrivalled equipment maintenance, service and support network across
southern Africa. However, the company's underground equipment offering is
limited to the Caterpillar Elphinstone product range of LHD's. Boart
Longyear has a comprehensive range of underground capital equipment
including drill rigs, roof bolters, LHDs and utility vehicles.
In terms of the partnership, Boart Longyear equipment sold in any territory
in sub-Saharan Africa where Barloworld Equipment is represented can be
maintained and serviced by Barloworld's service network. Countries involved
are South Africa, Namibia, Botswana, Lesotho, Swaziland, Malawi, Zambia,
Zimbabwe, Angola and Mozambique. In addition to equipment, Barloworld's
service network will also distribute Boart Longyear's consumable mining
tools.
Describing the deal as a smart partnership Phillips, said: "This alliance
will open up new opportunities for Barloworld Equipment and adds another
powerful brand to the range that we represent as we pursue our goal of
providing total solutions for our mining customers. By being able to offer a
complete package of equipment we believe we will add at least 25% to the
mining market opportunity for our Capital Equipment business in Southern
Africa."
"Boart Longyear's excellent product range and geographic footprint provides
an almost perfect match with those of Barloworld. The partnership will
strengthen our reach into southern Africa and, moreover, opens the door to
explore other mutually beneficial opportunities," said Brunner.
The arrangement is effective from July 1, 2002.
In the financial year to 30 September 2001, Barloworld's capital equipment
business earned revenues of R3.3 billion in southern Africa. The company's
worldwide revenues totalled R27.9 billion.
Smart Partnerships is a term used by Barloworld to explain the nature of its
long-term strategic and mutually beneficial relationships with customers,
suppliers and principals.
For further information:
Barloworld: Mark Drewell +27 11 445 1202; e-mail: mdrewell@barloworld.com.
Boart Longyear: Janet Nel +27 11 520-9300
jnel@cor.boartlongyear.co.za
Websites:
www.barloworld.com
www.boartlongyear.com
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