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Hanwha takes over LDE Corp
2015-08-15
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Hanwha Corporation, Korea’s leading industrial explosives manufacturer that aspires to become a global mining services player, is taking over 100% of shares of LDE1) Corporation Australia and its US entity, LDE Corporation USA, for KRW39 billion or A$45.3 million.

Hanwha Corporation signed the Share Sale Agreement on August 11th with Kevin Waldock, Managing Director of LDE Corporation to purchase 100% shares of the Australian business for KRW25 billion. The company also plans to take over LDE Corporation USA for KRW14 billion around October, which requires the buyer to go through local regulatory processes.

Established in 1996 in Queensland, Australia, LDE Corporation has an annual manufacturing capacity of 200,000 tons of emulsion explosives2), providing mining services3) to global miners in Australia and the US while producing various types of industrial explosives.

The acquisition is expected to boost Hanwha’s overseas sales. In 2014, LDE Corporation posted A$44 million in Australia and A$12 million in the US, totaling A$56 million (KRW48 billion). LDE secured a new customer in late 2014 that will jumpstart dramatic growth from 2015 onwards.

Hanwha also expects to see synergies created in its global mining services business from the LDE takeover. Currently providing mining services in Indonesia, Australia and Latin America, Hanwha has gained a foothold with this acquisition for a deeper entry into the Australian market based on its time-tested explosives technology and LDE’s proven quality and price competitiveness.

In addition, Hanwha is planning to demonstrate its business capability and experience by providing major global mining houses with a full range of mining services for their mine sites in Australia and the US. Hanwha Mining Services, Hanwha’s international business unit, has already registered businesses in Indonesia, Chile, Peru, Singapore and Australia. The company is also driving strong sales activities to win contracts from large miners that prefer sizable suppliers by capitalizing on its brand power as one of the Fortune Global 500 companies (329th in the 2015 ranking).

Hanwha has an optimistic outlook on the global mining services market. Whereas the Korean industrial explosives market has little room for further growth, overseas explosives markets are seeing a constant rise in development demand as Southeast Asia and Latin America are becoming increasingly urbanized with growing populations. On top of that, changing environments in mining are expected to lead to bigger demand for explosives and keep the mining services market on a sound growth trajectory.

Yang-soo Choi, President and CEO of Hanwha Corporation/Explosives, said “As the mother company of Hanwha Group, Hanwha Corporation’s growth has gone hand in hand with the development of the Korean economy. Hanwha was the first Korean company to produce dynamite explosives with local technology in 1957 and ever since then, the company has supplied various industries of Korea with safe, high-quality explosives and initiating systems. I am confident that our proven technology and reputation as a reliable supplier will allow us to become a global player in industrial explosives and mining services. We are committed to fulfilling our corporate social responsibility by bringing a new future to Korea and the society with explosives and initiating systems of excellent quality.”