Sandvik has wrapped up its acquisition of Italy’s Diemme Filtration, described by CEO Stefan Widing on a recent call with analysts as an important step into an attractive downstream niche market showing good structural growth.
“Besides the structural growth in mining, filtration is growing even faster,” he said.
“This market is growing by around 15% per year, driven also by regulatory trends, where mine operations want to de-risk their tailing dams and also get permits to operate the mine. You need large filter presses for this [tailings dewatering] and in this segment Diemme Filtration is the market leader.
“They have a total addressable market of SEK20 billion [circa-US$2 billion) in their core offering.
“If we add adjacent offerings that they have it increases further.
“The company has revenues of SEK1.1 billion expected this year, accretive margins and a high share of aftermarket. All the attributes that we would like to see.”
Sandvik has created a new filtration division within its rock processing business area.
Diemme Filtration is based in Lugo, Italy, and was said to have about 200 employees at the time of its acquisition.
