Tag Archives: Markku Simula

Metso Outotec expands India facility on track-mounted crushing/screening equipment demand

Metso Outotec is to invest in extending its current manufacturing capacity of mobile track-mounted crushing and screening equipment in Alwar, India.

The total Alwar production value is planned to grow by 30% from the current level and global track-mounted mobile machine capacity by 15%, the OEM said. Construction of the new factory facilities is planned to start in early 2022, and be completed by the end of the year.

The increased capacity in India will be used for the manufacturing of McCloskey mobile and Lokotrack equipment, employing approximately 200 additional people. After the extension is completed, the Alwar factory will be one of the biggest manufacturing sites of Metso Outotec, employing some 800 people, the company said.

“This is another step in developing our domestic and export business in India,” Markku Simula, President of the Aggregates business area of Metso Outotec, said. “At the same time, we are also investing significantly in engineering and R&D resources in Alwar and making it one of our global engineering hubs.”

Metso to add mobile crushing and screening specialist to group

Metso has signed an agreement to acquire McCloskey International, a Canada-based mobile crushing and screening equipment manufacturer with market share in the aggregates sector, as well as customers in the frac sand and industrial minerals segments.

“The mobile aggregate equipment market is expected to grow by 4-6% annually during 2019-2023, driven by the underlying road construction spend,” Metso said. “With this acquisition, Metso will be able to better take part in the attractive growth of mobile products within the aggregates industry.”

The enterprise value of the transaction is C$420 million payable at closing with an additional profitability-based earn-out consideration of up to C$35 million for the two-year period after closing, Metso said.

The deal comes on top of Metso’s recent acquisitions of Chile-based HighService Service and UK-based Kiln Flames Systems.

Pekka Vauramo, Metso’s President and CEO, said the McCloskey acquisition was in line with Metso’s profitable growth strategy.

“It strengthens our aggregates business in key growth areas. The different cycles of aggregates balance our previously more mining-focused Minerals portfolio well,” he said.

Markku Simula, President of the Aggregates Equipment business area in Metso, said customers in aggregates and construction have varying business needs, with this acquisition supporting the company’s expansion plans to “approach customers through multiple complementary channels and offerings to meet their diverse needs”.

He added: “Going forward, Metso plans to continue developing the McCloskey brands and distribution channels independent of the Metso channel. Synergies are, apart from sourcing, mainly revenue-related, resulting from the wider offering available to both channels as well as additional crusher equipment, service and consumable sales.”

In the 12-month period ending September 30, 2018, McCloskey had pro-forma sales of C$464 million ($344 million) and a pro-forma EBITDA margin of 10.3%, with the company’s sales in the fiscal year ending September 30, 2019, expected to exceed C$500 million, according to Metso.

McCloskey has around 900 employees in Canada, the US and Northern Ireland.

Paschal McCloskey, Founder, President and CEO of McCloskey, said: “We are proud of the growth achieved in a competitive market. I know that joining Metso is the right move for all our customers, employees, dealers and business partners. The combination of our unique focus on products and people and Metso’s global resources will help create even better solutions for our customers.”

Metso said the transaction is expected to be positive for Metso’s earnings per share in 2020. McCloskey will be reported in Metso’s Minerals segment following the acquisition, which is expected to closing during the December quarter of this year.