Explosives and mine technology group Orica (ASX: ORI) has announced that its 2017 purchase of the GroundProbe business has exceeded expectations with the new division considered a growth engine for the company.
GroundProbe, which makes laser and radar monitoring and measurement systems, cost Orica $205 million to buy but has exceeded the company’s original business case forecasts.
Earnings are 70 per cent higher than predicted with an additional 23 contracts won around the world through Orica sales channels.
Orica CEO, Alberto Calderon, told an investor update yesterday: “GroundProbe is the beginning of our second (growth) engine, a high growth business that is even more successful within Orica’s global structure.
“Our high growth engine will evolve, creating value for both our customers and Orica.”
GroundProbe is a successful Australian business and a leader in mining operations where its systems monitor open-cut pit walls, tailings dams, dumps and cuttings for potential slope slippage and collapse.
Under Orica ownership Mexico and Indonesia have been the most successful markets with seven new minesite installations in each country.
GroundProbe joins a fast-developing portfolio of digital and manufactured products which are underpinning strong growth for Orica.
As reported in @AuManufacturing news, the company’s BlastIQ products are allowing miners to better plan and predict fragmentation results from mine blasts, a major determinant of in-mine productivity.
Its WebGen wireless blasting systems have now been used 240 times globally, and during the year Orica delivered 23 of its BulkMaster truck-mounted explosives loading systems. Another 19 Bulkmaster trucks are on order.
During the past year Orica also continued its focus on lean manufacturing at its 29 Australian and international manufacturing sites.
During the year overall equipment effectiveness was maintaiined at above 80 per cent in all plants.
The company also recovered from a major equipment failures at its Burruip technical ammonium nitrate TAN explosives plant in Western Australia, also reported by @AuManufacturing.
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