SSAB to acquire 51pct stake in G&G Mining Fabrication

Swedish steel maker SSAB has signed an agreement to acquire
51% of the shares of Perth-based G&G Mining Fabrication.

G&G Mining Fabrication specialises in the refurbishment,
manufacturing and design of large fabrications for heavy earth moving
equipment, with particular focus on backhoe, loader and face shovel buckets and
service modules for the Western Australian mining industry.

The investment represents a significant advancement of
SSAB’s strategy to grow its presence in the aftermarket for wear parts and
service and to develop SSAB’s customer offering.

G&G enjoys a strong position within Western Australia,
one of the world’s most significant mining regions in terms of production,
where today end-users are demanding ever increased productivity through
enhanced efficiency and extended asset life. G&G together with SSAB create
natural synergies that will help fulfil the continuously increasing demands of
the mining industry.

The ability to access SSAB’s extensive knowledge of how to
best design and produce using Hardox wear plate will enable G&G to meet and
exceed its customers’ requirements. G&G will also work towards becoming a
certified Hardox Wearparts Centre.

“The joint development of more efficient mining buckets,
using innovative designs and wear materials such as Hardox wear plates is a
good example of how we will combine our strengths to deliver strong solutions
to the mining industry,” said Richard Ladny, Chief Executive Officer at G&G
in a statement.

By combining G&G’s end-user knowhow and its strengths in
refurbishment, design and fabrication of mining earthmoving equipment with
SSAB’s wear and material knowledge, G&G will become an even stronger player
offering a competitive range of products and services.

The closing of the acquisition is subject to the
satisfaction of various customary closing conditions.