Suppliers Roundup (May 26, 2003)

Explosives giants seal deal

Norwegian-based Dyno Nobel Holding and Connecticut-based Ensign-Bickford Co. have combined their commercial explosives businesses. The deal was first announced in September 2002.

Both Dyno Nobel, which is owned by the private European equity firm Industri Kapital, and Ensign-Bickford, a subsidiary of Ensign-Bickford Industries, specialize in blast initiation systems and blasting products. Dyno Nobel also manufactures and markets explosives and blasting services.

Under the deal, Ensign-Bickford will surrender most of its explosives assets to Dyno Nobel in exchange for a large share holding. (Ensign-Bickford’s Spanish Fork facility in Utah is not part of the deal.)

Combined, the companies will have annual revenue of nearly US$900 million from operations in 35 countries. The corporate headquarters of the new company will be in Oslo.

“In our industry, the trend is toward national or international contracts, better and more sophisticated service and the latest in high-technology explosives products,” says Dag Mejdell, president of Dyno Nobel. “The new Dyno Nobel can better meet these changing needs.”

Fluor wins cleanup contract

Fluor Corp., a California-based engineering firm that has a mining and minerals division, is part of a team that has been awarded a US$1-billion contract by the U.S. Dept. of Energy to clean up the environment at the Hanford nuclear waste site in southeastern Washington state.

Fluor has 30% ownership in the company that will operate under the name Washington Closure Co. Washington Group International and Earth Tech are the other team members.

The project, known as River Corridor Closure, comprises 210 sq. miles beginning on the shores of the Columbia River and extending inland to the middle of the Hanford site.

The site encompasses nine plutonium production reactors and a reactor fuel manufacturing and research area. The cleanup will entail placing three defunct plutonium production reactors in safe storage, demolishing reactor-area structures, remediating 269 waste sites and 46 burial grounds, and tearing down buildings. Of the 177 underground nuclear waste storage tanks on the Hanford site, 67 are known to be leaking currently, and a large proportion of the tanks are at or approaching the end of their design lives.

In other news, Fluor has opened a Toronto office to service mining clients in the area. The office will offer project audits, scoping and prefeasibility studies, bankable feasibility studies and engineering work.

Fluor had revenues of US$10 billion in 2002.

Sandvik inks deal with Barrick

Sweden-based Sandvik Mining & Construction, through its subsidiary, Sandvik Tamrock Australia, has signed a 3-year agreement with Barrick Gold to deliver a fleet of trucks, loaders and drill rigs for use at the major’s Plutonic gold mine Down Under.

Equipment is scheduled to start arriving in late May.

The open-pit and underground operation is in Western Australia.

Sandvik Tamrock Australia will deliver several Toro loaders and trucks, Axera drilling rigs, and Getman utility vehicles, among other equipment. The agreement calls for three years of maintenance, parts and training.

Sandvik manufactures drilling and excavation machinery and tools. Annual sales are about US$1.8 billion.

Vista opens Canadian office

Vista Training has opened a Canadian division to service the growing need for heavy equipment operators here.

So far, Vista has focused on training people to operate heavy equipment in the Athabasca oil sands of northern Alberta. The company has implemented on-site training management systems for ongoing employee training.

The Burlington, Wisc.-based company operates specialized training operations throughout the world.