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Caterpillar to exit underground longwall mining business with preliminary deal to divest product line to Germany’s Hauhinco

Posted on 24 Feb 2022

Caterpillar has been making some major strategic moves of late to focus on its core surface mining and underground hard rock mining equipment products, technologies and systems. This has included a licensing & IP agreement with India’s Gainwell Technologies, first for Gainwell to manufacture surface highwall miners in India, then more recently extending these agreements to include underground medium & high seam continuous miners and other room and pillar products including face haulers, roof support carriers, scoops/multi utility vehicles and feeder breakers.

On February 23 a similar deal was announced with Simmons Equipment Co in Virginia, US for low seam room and pillar lines. In addition, Caterpillar in 2020 had confirmed it was closing its Luenen, Germany underground coal longwall (and plow) mining equipment factory with production moved to Asia.

IM can now exclusively reveal that Caterpillar Inc is set to effectively withdraw completely from underground coal and soft rock mining through the divestment of its longwall business to Germany’s Hauhinco Maschinenfabrik GmbH & Co KG, based in Sprockhövel, North Rhine-Westphalia. There is a history of cooperation between Hauhinco and Caterpillar – notably Hauhinco working with the Caterpillar facility in Luenen to design complete water hydraulic systems for Caterpillar underground longwall mining systems. Hauhinco, a company with over 111 years of history, has a focus in mining in designing customer-specific high pressure emulsion pump stations for roof supports in longwalls as well as water spray pump stations supplying the shearer water spray or the coal plow water spray and the cooling systems for the drive motors with the necessary pressure and volumetric flow rate.

Caterpillar Inc’s executive office made this statement to IM: “Caterpillar has entered into a preliminary agreement with Hauhinco to divest the longwall product line. Subject to the negotiation of a final agreement, the deal is expected to be completed in Q3, 2022. Caterpillar and Hauhinco will work together to ensure a smooth transition to minimise any impacts to customers and dealers.” On the reasoning behind the move, the company stated: “To stay focused on Caterpillar core products and services, the company has made the decision to exit the longwall product line.”

No further details were given but Caterpillar’s remaining longwall business includes hydraulic roof supports, high-horsepower shearers, automated plow systems and armored face conveyors with intelligent drive technology controlled and supported by advanced longwall automation.