Volvo CE finalises purchase of Terex truck division
Volvo Construction Equipment has finalised its acquisition of Terex’s hauler business, which manufactures and sells off-highway rigid-frame trucks and articulated dump trucks, in a deal for cash proceeds of about $160 million.
The deal includes the main Terex factory in Motherwell, Scotland, the distribution of the trucks in the United States, and a 25.2 percent holding in Inner Mongolia North Hauler Joint Stock Co (NHL), which manufactures and sells rigid dump trucks under the Terex brand in China.
In a statement, Volvo CE said the acquired businesses (excluding NHL) had net sales in 2013 of approximately US$228 million and an operating income of about US$9.5 million.
"In addition to organic growth there has also been an opportunity for Volvo CE to fill product gaps via acquisition," Volvo CE president Martin Weissburg said. "Volvo CE’s existing portfolio is suited to the quarrying and light mining segment, but it has long been clear that there was a rigid hauler gap in the product line up.
Speaking at Conexpo in March — his first major speech since his appointment in January this year — Weissburg said that, with sales in mining forecast to rise in the mid-term, now is a good time to enter the market.
"The TEL haulers — both rigid and articulated — have a proven design and an established market population," he said. "Volvo CE shall continue to produce and support Terex Trucks under the Terex brand, and will also continue to support Terex Trucks manufactured and sold prior to completion of the acquisition."
When the sale was announced in December 2013, Terex Chairman and CEO Ron DeFeo said that, while "the truck business has been an important part of our company for more than three decades and continues to produce world class products", trucks no longer fitted well alongside the company’s changing portfolio of lifting and material handling businesses.
"I am confident that the truck business will benefit by joining a company sharing similar competencies and offering complementary products and services. We are pleased to have entered into this agreement with Volvo, which represents a strong strategic buyer for the business who values our distribution network and team members," DeFreo added.
Terex product focus — Gen 9 dump trucks
Users of the latest Generation 9 range of Terex articulated trucks, which are engineered for the toughest applications in mining, quarrying and construction, are reporting excellent availability percentages and fuel efficiency, with even the 40-tonne TA400 machines using an average of only 18 litres per hour of fuel.
With a 276kW (370hp) Scania engine, the Gen 9 TA300 is one of the most powerful trucks in the 30-tonne class. This power, combined with a heaped capacity of 17.5 cubed metres, means the Gen 9 TA300 is one of the most productive articulated trucks on the market.
The TA400 has a payload of 38 tonnes and a heaped capacity of 23.3 cubed metres. It has a gross power of 331kW (444hp) which, coupled with six forward gears and one reverse, in addition to a two-speed dropbox, means the Gen 9 TA400 can travel up to 60km/h.
All models in the new Gen 9 range benefit from oil-cooled multiple-disc brakes on each axle (front and rear) providing extended brake component life, reducing service intervals and operating costs, and improving overall braking performance compared to traditional dry-disc brake systems.
Another feature of the TA300 is the fully-independent front suspension, which is fitted as standard. This design greatly reduces operator fatigue and increases machine stability.
The Terex cab is developed around the operator to improve comfort, efficiency and productivity, the company says. Operating management and maintenance diagnostics have been simplified by the installation of a new electronics package with on-screen displays.
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