Suppliers Roundup (September 20, 2004)

Aker Kvaerner lands Peru deal

Southern Peru Copper has awarded two contracts worth a combined US$59 million to the Chemetics division of engineering firm Aker Kvaerner and its wholly owned subsidiary, Kvaerner Peru.

Aker Kvaerner will design and build a second sulphuric acid plant and an effluent-treatment plant at the Ilo smelter in Peru.

The new, 3,760-tonne-per-day acid plant is required to capture gases being emitted from the smelter, which is being modified to comply with Peruvian emissions regulations.

Aker Kvaerner’s Chemetics’ office in Vancouver will carry out most of the engineering. Other Aker Kvaerner companies, including Kvaerner Peru and Aker Kvaerner Industrial Constructors, will manage construction.

The Chemetics division supplied the first acid plant at the Ilo site in 1995.

Aker Kvaerner provides engineering and construction services. Last year, the company had revenues of about US$4.5 billion and employed 21,000 people in more than 30 countries.

Southern Peru is 54.2%-owned by Grupo Mexico, the world’s third-largest copper producer.

Atlas Copco grows in China

In an effort to gain a greater presence in China, Atlas Copco’s investment arm there has acquired air-tool manufacturer Qingdao Qianshao Precision Machinery Corp. (QQPMC). The toolmaker, based in Shandong province, generated US$6.6 million in revenue last year.

The value of the transaction was not disclosed.

The sale resulted in the formation of a joint venture known as CP Qianshao Power Tools. Atlas Copco (China) Investment Co. has an 80% stake in the venture, with the remainder held by QQPMC. The company employs roughly 80 people.

At the same time, Atlas Copco (China) Investment Co. has taken a 25% interest in a joint venture with QQPMC for power-tools-component manufacturing. QQPMC owns the remainder.

QQPMC produces pneumatic tools, and parts of tools, used primarily by industrial and automotive mechanics, as well as those in the aerospace industry.

The new operation will become part of the Chicago, Ill.-based Pneumatic division in the Industrial Technique business area of Atlas Copco.

In 2003, Atlas Copco had revenues of about US$6 billion, 98% of which was derived from outside its home base of Sweden. The group produces and markets compressed air equipment and generators, construction and mining equipment, and electric and pneumatic tools.

Vector Chile gets certification

Vector Chile, a subsidiary of California-based Vector Engineering, has achieved the International Standards Organization’s 9001-2000 certification, a series of internationally accepted standards for managing a business.

Kyle Crompton, general manager of Vector Chile, and Joel Peters, construction-quality assurance manager, began the lengthy certification process in January 2004. The certification is valid until May 2007.

“Undergoing the ISO 9001-2000 certification process gave us a valuable opportunity to examine our systems, giving rise to the development of higher efficiencies in how we manage our construction-quality assurance programs,” says Peters.

In addition to the initial certification, a yearly audit will be performed.

Vector provides engineering and environmental management services to mine and mineral processing operations. In addition to Chile, Vector has offices in Argentina, Brazil, Peru, Costa Rica, Panama, and the Philippines, as well as U.S. offices in Colorado, Nevada and California.