Normet acquires the leading Latin American producer of underground vehicles and strengthens its operation in Chile and South America

Santiago, Chile, 21th October, 2008
Normet Group, the Finnish manufacturer of mining and tunneling equipment, today announced the acquisition of Chile-based Semmco Group, a Latin American producer of vehicles for underground construction and mining.

Semmco is the only manufacturer of specialized robots and low profile transmixers for the application of sprayed concrete in South America. Its strength comes from design based on a long experience as operators of this type of machines. The broad experience has led Semmco to produce tough and reliable equipment with a strong customer focus, always thinking from the viewpoint of the operators and maintenance technicians. On time service and the best availability of spare parts have been key points in Semmco’s success.

“The acquisition is an important step for us, and Semmco will greatly strengthen our market position in South America”, says Aaro Cantell, Normet’s Chairman of the Board. “This will broaden our product offering to vehicles that very nicely complement Normet’s current offering”, Cantell continues. “This will naturally bring us to new customers as well”.

This acquisition is built on very amicable bases as Normet’s values can be seen in Semmco as well. Like Normet, also Semmco stresses the importance of customer focus in its operations. It has invested heavily in customer service, and it has a very qualified and motivated service engineer team doing service contracts all over South America. “We believe that sharing the common viewpoint and values will make this transition process successful”, Jari Osmala, the CEO of Normet Group comments. “With this acquisition Normet is getting production capacity and supply chain know-how in its important market area”, Osmala adds.

The Managing Director of Semmco, Ismael Anabalon Retes, agrees with Osmala, and is pleased to be part of the Normet Group: “When we decided to sell our company, it was important for us to be part of a strong leading brand like Normet, which had the same type of business philosophy, values and customer focus as Semmco. I am confident that working inside this large global company will open up new opportunities for Semmco’s management, personnel and development of new business.”

In addition to the similar ideologies, Semmco also shares Normet’s expertise in sprayed concrete works. Semmco has been a pioneer in developing robotized wet sprayed concrete in Latin America and has a wealth of process knowledge and application knowledge especially in manufacturing concrete pumps and machines. “This acquisition brings a whole new dimension into Normet. I’ve known the family members for the last 15 years as competitors and sometimes as partners, and I have a big respect for their achievements”, says Tom Melbye, the COO of Normet Group and the Managing Director of Normet’s Front Line Organization. “With this, an import part in the global Front Line strategy is now in place “, Melbye continues, ”I’m sure that having Semmco as part of our group will not only enhance Normet’s performance, but also enable us to respond more quickly to the ever changing market demands, in South America especially. In addition, we will be better equipped to offer Normet’s Life Time Care concept to our customers in South America”, Melbye points out.

Semmco operations and activities will be merged into Normet Chile Ltd and all the operation moved into Semmco’s premises in Santiago. Heikki Ulvila, the Regional Director of Normet Americas, says he is very happy to have the former owner and management of Semmco in the team. Ismael Anabalon Retes is now appointed as the General Manager, Ismael Anabalon Del Campo as Area Sales Manager and Marcelo Anabalon del Campo as Production Manager of the new Normet Chile Ltd.

Marcelo Anabalon Del Campo and Ismael Anabalon Del Campo both confirmed their excitement to be part of the Normet Group: “We will clearly benefits from Normet’s R&D, production and market knowledge, as well as from their strong global presence and network in the underground construction and mining.”

All personnel of Semmco Group are now full-time employees of Normet Chile Ltd. Together with the existing Normet team this strengthens our market position and service level considerably”, Heikki Ulvila finishes.


About Normet

Normet provides demanding solutions for selected customer processes in underground mining and tunnelling. Normet develops manufactures and markets equipment and vehicles for mining and underground construction as well as provides a comprehensive range of life time care services around the equipment and the processes they are used for. Normet Group is the global market leader in its product areas. The company’s head office and factory are located in Iisalmi, Finland, with a combined space of 23,000 sqm. The Group's turnover in 2008 will total approximately EUR 120 million. Normet currently employs 420 business professionals. 


About Semmco

Semmco, a Latin American leader and a pioneer in robotized wet mix sprayed concrete, employs 45 people and operates from a 6,000 sqm large modern production facilities with a warehouse just outside Santiago. It has built more than 70 robots, designed specially for the Latin American market. The Alpha 20 mining shotcrete robot has become the best seller of the region. Semmco Group’s turnover in 08 will total approximately EUR 6 Mio. For more info please visit www.semmco.cl