Hanwha Corporation, the nation’s leading explosives producer and global total explosives supplier, is taking over all stocks of Low Density Explosives (LDE) Corporation Australia, Australia’s mining service provider, and LDE Corporation USA, for the price of 39 billion won (US$32.98 million).
Hanwha Corp. signed a contract with LDE Corp. Managing Director Kevin Waldock on Aug. 11 to acquire 100 percent of the shares of LDE Corp. at 25 billion won (US$21.14 million). Also, it will take over 100 percent of the shares of LDE Corp. USA at 14 billion won (US$11.84 million) either Sept. or Oct. after the needed approval process.
Founded in the Queensland State of Australia in 1996, LDE Corp. has an annual emulsion explosives production capacity of 200,000 tons. The firm manufactures various explosives in Australia and the U.S., and provides mining services to mining companies.
Hanwha Corp. expects to boost its overseas sales through the acquisition. LDE Corp. posted a total of AU$56 million (US$40.94 million or 48.42 billion won) – AU$44 million (US$32.17 million or 38.04 billion won) in Australia and AU$12 million (US$8.77 million or 10.38 billion won) in the U.S. – in sales last year.
Also, Hanwha will have synergy effects with the overseas mining services business in its explosives division. The firm is currently mining in Indonesia, Australia, and Latin America. An official from Hanwha Corp. said, “With Hanwha Corp.’s explosives technology and LDE Corp.’s verified quality and price competitiveness, we can now accelerate the Australian market invasion.”