Atlas Copco became the latest company to move into the mobile crushing market last year with the acquisition of Hartl Anlagenbau. Claire Symes spoke to Bo-Göran Johansson about the new strategy and market prospects.
Many quarry operators prefer to use single suppliers wherever possible for construction equipment these days as it can help ease maintenance and repair issues, as well as simplify on-site use for operators. In recent years this has seen OEMs extend their product ranges but the trend is also being seen in the crushing and screening sector.
"There is a trend in the market to be friendlier towards the planet and we see the recycling sector as a growing industry," said Atlas Copco vice president of marketing for surface drilling equipment Bo-Göran Johansson. "We want to be able to offer customers a complete solution, so acquisition of Hartl Anlagenbau to add mobile crushing and screening to our portfolio is a logical step."
The new product range has been incorporated into the company's surface drilling division and the expansion is clearly something that Johansson is excited about expanded range.
Expanded Range
We want to be able to offer customers a complete solution so moving into the mobile crushing and screening market fits well," explained Johansson. "We want to be able to offer the optimum solution and help our customers to be profitable, so being able to locate crushing and screening operations on the bench and close to the production face is a key part of that." In addition to more aggregate applications moving to mobile solutions, Johansson added that he believes there will be further growth in the recycling market. "We consume a lot of natural resources today in new construction but there is also the possibility to re-use these materials after demolition and legislation is starting to drive this too." According to Johansson, there are significant synergies between the companies that make this a strategic acquisition. "Hartl Anlagenbau's products have good engineering design behind them and Atlas Copco adds the network of service and parts delivery that is necessary for this industry," he said.
Atlas Copco in not a highly acquisitive company but has a history of strategic takeovers that provide important bolt-on businesses that have been key to its growth. In 2004 the company acquired Ingersoll Rand Drilling Solutions widening the range of drill rigs on offer with surface drilling equipment and in 2005 the company bought out
Although it is seven years since the buyout of Ingersoll Rand Drilling Solutions, the company has only recently announced a new nomenclature for the surface drilling rig range that harmonizes the ranges from the two sides of the business.
This contrasts with the speed at which the Powercrusher products have been brought into the fold with the Atlas Copco branded PC3 and PC6, which have already been displayed at Conexpo. The company has confirmed that the Powercrusher range will continue to be manufactured at the former Hartl Anlagenbau factory in Saint Valentin, Austria.
"There is a lot of engineering expertise located in Saint Valentin so it makes sense to retain the facility there," said Johansson.
Market Reaction
According to Johansson, feedback from the market about the acquisition has been good and added that the display at Conexpo has resulted in some "good opportunities".
"Service back-up is a key element to success in the crushing and screening market and we add that to the Powercrusher brand, which will be important as the market recovers. Hartl has a reputation for high quality engineering and is strong in Central Europe and we plan to take this into Western Europe and the North American markets where Hartl has not been so strong in the past.
"The US market is still at a very low level but I believe it reached the bottom of the recession at the end of last year," said Johansson. "Despite the downturn we have tried to maintain our network to support customers and this will be a benefit as the market returns to better levels. Housing was one of the worst hit sectors but I expect this to return within one or two years.
"Mining is the main driver for us at the moment - this sector is in the top levels, especially in China.
"Nonetheless, quarrying and construction is down almost everywhere and in Europe the Mediterranean countries, Ireland and the UK have been badly hit. Central and Eastern Europe have also been impacted by the economy.
"However, we are starting to get some signs of recovery although it is not clear how long it will take for levels to return." In the short term, Johansson said that the earthquake and tsunami in Japan is likely to impact on production as Atlas Copco relies on sub-suppliers in the region. "Japan has a culture that is built on strength of character and it is likely that the problems will not last long and the rebuilding work may also help the country pull out of its 20-year recession." Johansson added that lead times are currently increasing and described order levels as "healthy".
Innovation
Looking ahead at the company's new product line, Johansson said that they would be working on the Powercrusher range to comply with Stage IIIB emissions legislation first and would then look at introducing new products. "We are always looking at where there are gaps in our portfolio in our surface drilling range and the same will apply to the crushing equipment," he said. "We are working on fully integrating the brand in terms of appearance, sales, parts and maintenance and then we expect to work on expanding the range."
