DSI ACQUISITION TO GROW AUST. BUSINESS AND CREATE INROADS INTO CHINA
DSI has signed an agreement under which it will acquire Jennmar’s businesses in Europe, Latin America, Australia and China (50%). Jennmar China will be renamed to “Rocbolt Technologies China” and operated as a DSI/Jennmar Joint Venture, in line with the already jointly owned businesses in South Africa and Australia (resin cartridge production).
“This combination of businesses comes at a time where global mining markets are under significant pressure due to a steep decline of commodity prices and weakening demand for some commodities. These developments forced mining companies to rigorously reduce cost and cut back production”, said Group CEO Patrik Nolaker..
“Combining the strengths of both Jennmar and DSI will allow for important cost improvements and efficiency gains on various levels (e.g. procurement cost, production capacity utilization, warehouse footprint). Additionally, our customers will benefit from the most comprehensive portfolio of ground support products and services available on the market”.
DSI’s Underground businesses will be merged with Jennmar’s respective businesses once the deal will become legally effective. The Australian transaction is conditional on approval from the antitrust authority in Australia. Once such approval is obtained, proper integration plans will be developed with the aim to combine the strengths of both organizations and to make a new organization more efficient and effective.
Derek Hird, Regional Chief Executive Officer, DYWIDAG-Systems International Pty Limited
25 Pacific Highway, Bennetts Green, NSW 2290
P: +61 2 4947 5504