Fluor is well known in the mining world for its EPC/EPCM services on notable projects like Anglo American’s Quellaveco and expertise in mineral processing and metallurgy projects. But the company is shortly announcing a new San Diego, California-based spin off company called Virta Inc, which it says “brings innovation to the design and supply of material handling systems.” The company says that Virta is a new bulk material handling systems company “founded on seasoned leadership, global reach, and exceptional technical depth.” Virta is scheduled for official launch on September 27th.
The statement adds: “We have listened to our clients to bring the industry a responsive fit-for-purpose material handling equipment and systems provider. Virta has assembled a talented team of recognised experts with decades of specialised experience. Together, we deliver customised design/supply and design/build solutions to material handling requirements with comprehensive service.”
Fluor’s own description of its advanced bulk materials handling offering states: “Clients can benefit from Fluor’s ability to develop unique solutions for specific challenges as demonstrated in the original development of the ‘Direct Dump’ semi-mobile crusher station concept; development of a new design for a specialised Rotary Breaker for use in processing oil sand; design of a proportional feeder for accurate division of coarse ore from one high capacity conveyor to two downstream conveyors.”
Virta lists its “extensive expertise as covering plant conveyors and systems; in-pit crushing and conveying, overland conveyors, underground conveyors and systems, crushing and screening plants, storage and reclaim, plus ports and terminals.” Fluor has been advertising in recent months for a series of roles at Virta including Senior Fabrication Manager, Project Manager and Buyer.
Why it was deemed necessary to spin off the materials handling side of its offering into a new brand and business is as yet unclear. It may be related to the award of these types of contracts in recent years to Fluor, notably its selection by BHP in 2018 to provide construction and project management services at the South Flank iron ore project in the Pilbara region, Western Australia. South Flank will be the largest iron ore processing facility ever built in Western Australia. The project will include an 80 Mt/y crushing and screening plant, an overland conveyor system and rail-loading facilities.
Fluor itself is also in the process of a strategic review that was annouced on September 24. As part of this it said “the Mining, Metals and Industrial segment will continue to pursue predominantly reimbursable work applying the revised project pursuit criteria.” On the overall business it says: “In all cases, risk projects will be subject to an initial bid/no-bid approval followed by final approval by the Fluor executive team. This increased focus on selectivity will change the prospect pipeline profile and drive the company to a backlog and execution platform that can deliver consistent results.” The review comes after a challenging year so far: the second quarter saw a net loss attributable to Fluor of $555 million compared to net earnings of $115 million a year ago.
