Mining services company ADG Global Supply (ASX: ADQ) has established a new London based office and distribution facilities in London and Antwerp as a part of an expansion into Europe. ADG says its “increased presence in Europe will allow the company to better service exploration and mining clients operating across Africa. ADG is a Western Australian companty which currently has clients operating in 13 countries throughout East, West and Central Africa. In FY 2011, ADG doubled its revenue from its industrial products, global procurement, supply chain and project logistics services into Africa to A$21 million.
ADG Managing Director, John Mancini said a Europe office with distribution and logistics capabilities was an important strategic expansion for the company. “Customer activity in the region is growing. About half of ADG’s top 20 clients by revenue are involved in exploration or mining activities in Africa,” Mancini said. “And with around 13% of the total global exploration spend happening in Africa and approximately 1,400 mine and exploration projects – a quarter of which are owned by Australian companies – we expect to see continued solid demand for ADG’s expertise.
The Europe presence will allow ADG to offer consolidated supply of goods from a growing supplier base, with improved logistics into Africa. It will also provide time zone benefits, with clients based in Africa able to deal directly with offices based in Perth or London depending on their requirements and deadlines.
With this improved capability we are now well-positioned to meet the growing demand from existing and new clients operating in Africa and in turn grow our sales,” Mancini said.
ADG works with clients in the exploration, mining and energy markets through its ‘single contact- global reach’ model.