London-listed Weir is paying US$75 million for the 50% of Chile’s ESCO Elecmetal Fundicion Limitada (ESEL) it does not own.
ESEL is a manufacturer of ground engaging tools, half owned by Weir’s ESCO business unit and by Chile’s Elecmetal.
“This strategic move strengthens our ability to serve customers across South America, expands our foundry capacity in the region and with our world-class engineering capabilities, will enable further optimisation of our manufacturing footprint globally,” Weir CEO Jon Stanton said.
ESEL makes ground engaging tools for the South American mining industry at a 13-year-old foundry in Chile
“The transaction will also accelerate our go-direct strategy in Chile, mirroring the success we’ve achieved in other ESCO geographies,” Stanton said.
“With full operational control, we will enhance our Weir network to grow market share and capitalise on Chile’s long-term structural tailwinds in mining, particularly in copper.”
Weir expects to wrap up the transaction in the first quarter next year.
