Komatsu to sell UK based Conveying and Projects businesses
With two opportunities selected for the future of its UK-based conveying businesses, Komatsu announced plans for a management buyout of its in-region conveyor manufacturing business and a separate agreement to sell its projects business (UK-region conveyor system engineering and delivery) to Fairport Engineering Limited (FEL).
“We’ve been waiting for the right opportunities for our UK-based conveying businesses, which really offer two distinct areas of products and services for customers,” said Peter Salditt, president of underground and hard rock mining for Komatsu Mining Corp. “The projects segment delivers bespoke engineered systems, while the manufacturing segment provides components and spare parts for OEMs. Therefore, distinct buyer groups naturally aligned with each, resulting in the decision to sell the businesses separately to strive for the best outcome for our stakeholders.”
Based in North West England near Manchester, FEL has been in business since 1982 providing engineering solutions for a range of businesses including mines, quarries, sugar refineries and power stations. With the addition of the former Joy Global (UK) Limited projects business – which has focused on customized construction and civil tunnelling offerings – the company will add tunnelling and conveying capabilities to its portfolio.
The management buyout of the manufacturing side of the UK conveyor business will result in a new independent company called SE-TEK, led by CEO Giles Richell. The group plans to support the UK business’s existing conveyor parts and components customers while also planning for future growth.
Employees assigned to the two parts of the business being purchased are being consulted with in accordance with the UK Transfer of Undertakings (Protection of Employment) Regulations (TUPE), and those not assigned to either business are being consulted with in terms of the potential impact of the sales.
Komatsu’s crushing portfolio is not included in the scope of either sale and will continue to be retained by the company and supported through the soft rock sector of its business, which also leads the mining industry in room & pillar and longwall system engineering, service and technology.
In March, Komatsu announced the sale of its US and Australian-based conveying businesses to investment company Stellex Capital, which plans to leverage legacy equipment brands Continental and Goodman-Hewitt, which were part of the sale.