Industrea to supply directional drilling and coal degasification systems to Longmei Mining Group
Industrea ’s dominance of the mining equipment sector in China in the key areas of safety and productivity has been enhanced after winning a contract to sell directional drilling and coal degasification systems to the Longmei Mining Group.
Longmei is one of several major Chinese clients, which include China Shenhua Energy Company, a coal mining company, Jingcheng Group and Shanxi Coal. Industrea managing director Robin Levison said China’s resources sector was one of the large and rapidly growing sectors in the world and Industrea was well-positioned to profit from it.
“The strong demand for energy and the associated push for self sufficiency and less reliance on imported coal, continues to drive the domestic growth of China’s resources industry. At the same time the modernisation of mines around the country has fuelled demand for Industrea’s products, particularly those that improve safety and productivity.”
Robin Levison predicted that sales and revenue in China would continue to grow.
“With our subsidiary Wadam Industries handling sales and distribution in Beijing, we will be able to increase awareness of Industrea’s expanding product range throughout China, and continue to develop our contacts in the mining industry,” he said.
“These contacts are especially significant with Wadam Industries selling a variety of equipment made by Industrea subsidiaries, along with associated OEM (Original Equipment Manufacturers) products, with revenues arising from both initial capital sales and ongoing revenue through sales of spare parts and servicing”.
“The expansion of the recurring revenue portion of Wadam Industries’ business has always been a key strategic goal for Industrea as it seeks to widen the range of products and services provided to the Chinese market”.
“As the population of Wadam Industries-supplied equipment continues to grow in the Chinese market, Industrea has an expectation that revenues associated with the sales of spare parts and servicing will increase in line with total cumulative sales.” Robin Levison said that Industrea had established a global reputation for producing equipment of the high quality and providing efficient and effective service and support.
“As such, we are now the preferred supplier in certain areas of mining safety and productivity equipment for mining companies in countries including South America, South Africa, Russia and South-East Asia,” he said.
Longmei Mining Group, based in north-west China, has purchased four drilling guidance systems from Industrea for its coal mines. It previously purchased two drilling guidance systems from Industrea in 2007. The equipment assists in the accurate placement of in-seam horizontal bore holes. The technology aids in the degasification of mines and is suitable for both underground and surface drilling.
27-May-2008