Suppliers Roundup (April 26, 2004)

Atlas Copco to buy US driller

Atlas Copco will acquire Ingersoll-Rand Drilling Solutions, a division of Bermuda-based Ingersoll-Rand Co., for roughly US$225 million in cash.

The agreement, which is subject to approvals, would give Atlas Copco a stronger presence in the U.S. and its lucrative open-pit mining market. Last year, Ingersoll-Rand Drilling Solutions generated US$300 million in revenue, and it currently employs 950.

“Drilling Solutions is a perfect strategic fit, since Atlas Copco is a global market leader in underground drilling, while Ingersoll-Rand is strong in surface drilling, especially in the United States,” says Bjorn Rosengren, senior executive vice-president of Atlas Copco Construction & Mining Technique.

Ingersoll-Rand Drilling Solutions is based in Garland, Tex., and has production facilities in several countries. The division manufactures and distributes drilling equipment for surface mining and construction.

Atlas Copco intends to create a division called Atlas Copco Drilling Solutions. The company’s Construction and Mining Technique division develops, manufactures, and markets rock drills, rock drilling tools, tunneling and mining gear, surface and geotechnical drilling equipment, construction tools, and loading equipment. In 2003, the unit had US$1.1 billion in revenue.

New bit for Fordia

Montreal-based Fordia Diamond Tools has introduced the T-Rex 9-11 drill bit.

The bit was designed for use in hard rocks such as granite, granodiorite, quartz and silica, and has been clocked at rates as high as 5.5 inches per minute.

Fordia won the 2003 Grand prix Qubcois de la qualit, from the Quebec government for its high standards and outstanding results in all aspects of its operations.

Fordia is also the official worldwide distributor of VersaDrill Canada drill rigs and products. The company has offices in Val d’Or, Que., and Sudbury, Ont., as well as Mexico, Chile and Peru. Distributors cover Venezuela, Saudi Arabia, Japan, Iran and Australia.

Quadrem a success

Quadrem, the online marketplace for mining and construction equipment, is on-track to double the value of annual transactions for goods and services in 2004 to more than US$2.6 billion.

In 2003, the company experienced a 400% increase in transaction volume, compared with 2002. Accordingly, revenue went up 100% last year, and new suppliers registering with the site increased by 150%. Quadrem says more than 6,000 suppliers now use its web site.

“Analyst organizations predict eMarketplaces will re-emerge in 2004 as a widely adopted supply-chain management solution,” says Michael Efting, Quadrem’s CEO. Quadrem attributes its growth to an improvement in relationships between buyers and sellers, a reduction in supply-chain costs for both buyers and suppliers, and the addition of new buyers from industries, such as consumer packaged goods and oil and gas.

Established in 2000, Quadrem has locations in Australia, Brazil, Canada, Chile, France, Mexico, The Netherlands, Peru, Singapore, South Africa, and the U.S.