On the mining side, LeTourneau makes large wheel loaders for surface mining. LeTourneau’s drilling products business designs offshore jack-up drilling rigs as well as the primary components for these rigs. It is also a major manufacturer of drilling equipment for large land and offshore rigs and of specialty steel products.
“This acquisition represents a compelling opportunity for Joy Global, with strong growth prospects for both the mining products and drilling products business segments,” said Mike Sutherlin, president and CEO, Joy Global. “The LeTourneau mining products business is a natural fit with our P&H business. It adds another solution for surface loading that complements our electric mining shovels, and gives us access to smaller and non-electrified mines. The drilling products business moves us into another area of resource extraction that has similar fundamentals and value drivers as surface and underground mining, and therefore is a good fit for our business model which focuses on equipment reliability and Life Cycle Management. Oil and gas has been defined as a strategic growth opportunity for a number of years, and LeTourneau gives us a great entry point into this sector.
LeTourneau is well positioned to grow its mining business as mine expansion continues. It is the only manufacturer of electric drive loaders and has the broadest range and largest sizes of wheel loaders in the mining industry. These are the only wheel loaders with installed power greater than 2,000 gross horse power rating, and the only wheel loaders capable of loading 400 ton haul trucks.
“The addition of LeTourneau’s front-end loaders will enhance our product offering and leverage our existing manufacturing and product distribution networks,” said Randy Baker, president and COO, P&H Mining Equipment. “We expect a smooth integration since P&H already serves as a dealer for LeTourneau in key geographies around the world. In addition, LeTourneau’s electric drive technology is more efficient than mechanical drive systems, which has resulted in strong order growth. We believe the LeTourneau business gives us the opportunity to further build on our Life Cycle Management strategy by adding a complementary product range that brings volume and scope to our aftermarket business. We intend to use this acquisition to more efficiently provide our customers with better service levels. As a result, we will look for ways to integrate the LeTourneau and P&H field facilities and distribution activities.”