Hanwha Corporation Acquires Australian Mining Company LDE Corporation
- Hanwha Corporation taps into mining services market in Australia and US
- Hanwha Corporation secures bridgehead for becoming global leader in mining services
Hanwha Corporation CEO Choi Yang-soo (left) shakes hands with LDE Corporation Managing Director Kevin Waldock (right) in Hanwha Corporation Australia office based in Perth after signing an all-stock transfer agreement on August 11. Hanwha Corporation will acquire all shares of LDE Corporation Australia and LDE Corporation USA at 39 billion won (USD33.15 million)¹.
Hanwha Corporation, Korea's leading commercial explosives company and global total explosives service² provider, is taking over all shares of Australian mining service provider Low Density Explosives (LDE) Corporation Australia and LDE Corporation USA at 39 billion won (USD33.15 million).
Hanwha Corporation signed a stock transaction deal with LDE Corporation Managing Director Kevin Waldock on August 11 to acquire 100 percent of LDE Corporation's shares at 25 billion won (USD21.25 million). The company will also take over all shares of LDE Corporation USA at 14 billion won (USD11.90 million) between September and October upon completing necessary approval process.
Established in Queensland, Australia, in 1996, LDE Corporation boasts an emulsion explosives³ production capacity of 200,000 tons annually. The company manufactures diverse types of explosives in Australia and the US, and provides mining services to mining companies.
Hanwha Corporation expects to bolster its revenue in the global market through this deal. LDE Corporation recorded AUD44 million and AUD12 million in Australia and the US, respectively, in sales last year, totaling to AUD56 million (approx. 48 billion won or USD40.80 million). The new customer base it has secured in the second half of 2014 will contribute to significant growth in its business after 2015.
Hanwha Corporation expects this deal to create synergy with the overseas mining service projects its explosives division engages in. It is currently providing mining services in Indonesia, Australia, and Latin America. The acquisition brings together Hanwha Corporation's expertise in explosives and LDE Corporation's quality and cost competitiveness already verified in the industry to spur Hanwha's penetration in the Australian market.
LDE Corporation will continue to demonstrate its capabilities and experience for stable business operation in mining services in Australia and the US as a major Western player, while Hanwha Corporation plans to leverage its brand image as a Fortune 500 company to engage in active sales and further contracts from big-size mining companies that favor suppliers with economy of scale.
Hanwha Corporation holds a positive outlook on overseas mining services market. While the domestic commercial explosives market remains stagnant, the overseas market is witnessing continuous growth in demand owing to regional development needs arising from population growth and urbanization, particularly in Southeast Asia and Latin America. Another factor working in favor of continuous growth in mining services is recent shifts in mining environment that lead to increasing demand in explosives.
"Hanwha Corporation, the mother company of Hanwha Group, has accompanied the growth of Korea's economy. Since it achieved localization of dynamites for the first time in Korea in 1957, the company has been providing safe and high-quality explosives and chemicals to various industries," Hanwha Corporation Explosives Division CEO Choi Yang-soo said. "Hanwha Corporation's expertise in explosives, together with Hanwha Group's brand power, enables the company to make inroads into more markets around the world to realize globalization of the explosives market. It will continue to position itself as a leading company contributing to industry and society by building a new future through high-quality explosives and chemicals, and cutting-edge technologies."
| ¹ Exchange rate as of August 11 KRW1,176.50/USD1 |
² Mining service
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³ Emulsion explosives
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Hanwha Corporation
Hanwha Corporation, the parent company of the Hanwha Group, is a global manufacturing company that has directly contributed to the growth of South Korea's economy. There are 3 divisions under the Hanwha Corporation: Global, Defense, and Machinery. Hanwha Corporation was founded in 1952 as Korea Explosives Company, quickly becoming the leader in the explosives industry of South Korea. It has since grown into a global manufacturing company operating in three business areas—explosives and chemical, defense, and machinery.
In 1959, Hanwha was the first domestic manufacturer of dynamite in South Korea. After having successfully developed safer, high-quality industrial explosives and fire process products, we have been able to supply the South Korean government with the crucial means to rebuild its cities and infrastructure.
For more information, visit: www.hanwhacorp.co.kr/eng
Hanwha Group
Founded in 1952, Hanwha has grown quickly by anticipating and responding to changing business environments with a balanced business portfolio that includes energy & materials, aerospace, finance and retail & services. Our expertise and synergy in key areas have catapulted us into the seventh-largest business in South Korea and a Fortune Global 500 company. Hanwha continues to grow rapidly as we strive to pursue global leadership in all of our businesses. We are building a robust foundation for sustainable development and a brighter future for everyone.
For more information, visit: www.hanwha.com
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