Magotteaux becomes Strategic Equity Partner of Grinding Media South Africa
May 31, 2018 - The Industrial Development Corporation (“IDC”) and Magotteaux International S.A. (“Magotteaux”) have reached an agreement on extending their partnership regarding Grinding Media South Africa (“GMSA”).
GMSA which is a newly created company - spun out of industrial group, Scaw Metals (“Scaw”), specializes in the manufacturing and design of grinding balls which are critical to the mining, cement and utilities industries.
The partnership which will now introduce Magotteaux as a Strategic Equity Partner in GMSA, will also enhance the technical and financial capacity of the business as well as providing access to new growth markets. As part of this partnership, Magotteaux will assume the operational management of GMSA upon conclusion of the agreement.
Magotteaux and Scaw have historical business ties, a factor which the duo are banking on to further enhance increased production and possible expansion of market opportunities for GMSA.
“Magotteaux has been collaborating closely with Scaw High Chromium grinding media for more than 30 years”, says Sébastien Dossogne, CEO of Magotteaux. “Strengthening this multiple-years of team work, and extending it to the forged grinding media activities, aligns with our strategic priorities. We seek leadership in all markets we serve, which explains the intensification of our presence in the forged grinding media business across geographies. In addition, we consider Africa as a strong growth region, with lots of untapped potential. We also see South Africa to be the optimal platform to start from, -as such we are very excited by the opportunities that the partnership with IDC and other local investors, offers us going forward”.
Commenting on the partnership, IDC CEO, Geoffrey Qhena was optimistic regarding future prospects for GMSA. “This marks a significant milestone for GMSA in the sense that Magotteaux footprint across the globe will certainly open up new markets and related growth opportunities says Qhena adding that this will also lead to the introduction of new capabilities and efficiencies in the company thereby sustaining existing jobs and potentially creating new job opportunities.” Most notably though Qhena says, the partnership demonstrates foreign investor confidence in South Africa.
Magotteaux is the leader in process optimization for high abrasion extracting industries (mines, cement, power, quarries, dredging and recycling). With about USD 1.7bln total assets, Magotteaux employs about 3,200 employees, has a global market footprint through its specialized production units and sales offices and Technical Centers worldwide. Magotteaux is part of the Group Sigdo Koppers, the Chilean-based conglomerate providing services and products for the mining industry. Learn more at www.magotteaux.com and www.sigdokoppers.cl.
Established in 1940, IDC is a national development finance institution set up to promote economic growth and industrial development. The company is owned by the South African government under the supervision of the Economic Development Department.
IDC provides finance for industrial development projects, plays a catalytic role in promoting partnerships across industries within and outside our borders, and promotes regional economic growth. More information on www.idc.co.za.