FAMUR opens a new chapter following KOPEX formal integration

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Now completed, the process of the FAMUR SA and KOPEX SA integration was carried out in accordance with the integration model of both groups announced on 9 May 2017. It assumed the inclusion of the machinery section of KOPEX in the FAMUR Group. The Management Boards of both companies recognised that consolidation would increase levels of activity, multiply potential, and expedite the implementation of the overseas expansion programme to a considerable extent, which is an inherent part of the development strategy of the FAMUR Group. FAMUR SA expects that half of FAMUR Group revenues will be generated on foreign markets within the next five years. In April 2018, shareholders of both companies agreed to complete the integration process in accordance with the KOPEX SA Division Plan.

According to the plan, we have managed to complete the comprehensive project involving the integration of two largest companies of the Polish mining-related market. Combining the potential of both companies gives us a real opportunity to create the Polish champion, which will be ready to implement comprehensive mining and energy projects anywhere in the world. As a result of gaining a business advantage consistently, we are already a strong and credible partner on the international market. The current good economic situation in the energy resource sector translates into a real boom of investments carried out by mining companies in Poland and abroad and is in our favour when it comes to achieving 50% of our revenues from export by 2022 – says Mirosław Bendzera, CEO of FAMUR SA.

FAMUR has developed an optimal operating structure model. As part of the full integration of both entities, a joint servicing, diagnostic and modernisation centre was established in Zabrze. It is responsible for the management of the entire joint fleet of longwall shearers. The manufacture of new longwall shearers was merged in the state-of-the-art FAMUR SA plant in Katowice. The entire electricity and electronic segment was also integrated as part of a new business area managed by the Elgór+Hansen company. The best and most effective use of the competencies of both companies in terms of their employees was also of equal importance. Therefore, the process of structure optimisation and employees’ relocation in both companies was performed. Combined with the integrated KOPEX section, the entire FAMUR Group currently employs approx. 5,000 people.

The key issue was to develop target processes precisely and to select employees for individual assignments within a new combined structure. Our employees have been allocated in such a way as to ensure that their competencies, knowledge, and know-how are put to the best use. This guarantees the performance of subsequent agreements by the FAMUR Group as these agreements will require specialised skills, efficiency, operational flexibility, and quick reactions – stresses Bartosz Bielak, the Vice-President of the Management Board of FAMUR SA.

In view of the Management Board of FAMUR SA, the market situation and revenues generated last year constitute a solid basis for the development and implementation of a new development strategy of the FAMUR Group. We want to operate on a global scale and that is why company operations are focused on the analysis of specific scenarios and variants of building the business presence of the Group on particular markets in various regions of the world. Finally completed, the formal integration with Kopex has extended the offer potential of the Group and its abilities to perform new agreements significantly. Export markets, which are very promising for FAMUR, include Russia, Kazakhstan, Turkey, Indonesia, Argentina, and Mexico. In addition, the Group has an interest in new market directions such as India, China, Canada, Australia, and the USA. To achieve actual effects of global activity and to obtain value added in a long-term perspective, areas in which there are real possibilities of development are analysed and projects that will provide the highest growth potential of the Group are sought after. The overseas expansion strategy is to be presented to the market in Q3 of this year.