Bradken ramps up focus on mining sector

CEO Sean Winstone said the organisation was focussed on expanding its customer base for mining wear products and service, and as a result will look to exit the highly technical niche markets it serves in North America, through the sale of its Specialty Products business.

“As we focus on growing Bradken’s presence with mines around the world, we’ve found that the Speciality Products North America (SPNAM) business no longer aligns with our strategy or business model,” Mr Winstone said.

“This business has been part of Bradken since 2008 and expertly serves its customers across defence, energy and industrial markets with highly engineered complex castings.

“Over that time, we’ve seen distinct business areas develop in different ways. Our mining organisation is seeing its customers ask for a broad range of products and services with a focus on value-add digital services, while SPNAM maintains highly specialised capabilities to serve its customers with bespoke, often mission critical, castings.

Bradken will look for an owner who can make this business part of their core operations and help it grow to its potential.

“It’s a solid operation, with great people, exceptional customers and a very strong order book. I’m certain it will thrive under the next owner,” Mr Winstone said.

“These decisions are never easy, but this is the right one for Bradken at this time.”

Bradken will also be working closely with its SPNAM customers to make sure service is not impacted during the sales process or the transition to a new owner.

The Americas is still key region for Bradken’s mining business and those customers will not be impacted.

“I look forward to seeing Bradken continue its evolution, built on more than 100 years of innovation and growth.

We’ll enter this new chapter with a clear focus on delivering a valuable range of product and service solutions that help our mining customers increase production, improve efficiency of their equipment and improve safety on site,” Mr Winstone said.

Learn more about the SPNAM business at https://bradken.com/about/our-businesses/specialty-products-nam

Bradken’s 100-year history has seen the company focus on a range of different markets and capabilities over the years, with a strong foundry capability underpinning its centenary in operation.

The direction of our company at this time is firmly focussed on serving miners around the world and supplying them with product and service solutions that help their equipment be more productive, more efficient and safer. This includes but is not limited to cast and fabricated products.

After an assessment of our markets and our business, we see our growth opportunities and future clearly in the mining sector and want to focus our attention on maximising those opportunities. We’re investing in composite rubber products and digital services.

SPNAM serves a range of industries with highly engineered complex castings, including military, energy and rail. While our SPNAM business is very successful, we think it will be even more successful under an owner who can give it its full attention.

The Bradken SPNAM business currently employees about 570 people across a number of locations in the USA and Canada. We expect a new owner will take on these highly-skilled specialist employees.

The Bradken SPNAM business operates manufacturing facilities (foundries, machine shops, fabrication facilities in the USA and Canada including: Tacoma Washington, St Joseph Missouri, Atchison Kansas and London Ontario.

There is also a small office in Kansas City and a small number of employees who work remotely.

The Bradken mining business includes sales sites across the USA and Canada, supported by manufacturing sites in Mont-Joli, Quebec and Edmonton, Alberta in Canada. These mining focussed sales and manufacturing sites will not be impacted by the decision.

The Americas is a key growth market for our mining business.

Bradken finalised its acquisition of this business then known as Americast in 2008 and it has been a valued part of the business since that time.

In recent years as miners change their needs and look for solutions beyond castings, it has become increasingly clear that the SPNAM business no longer fits neatly with Bradken’s strategic goals. It’s expertise in highly engineered bespoke castings is integral to many of its customers operations and a new owner will be able to make sure it reaches its potential.