North Bay-based Norgalv has been bought by Sandvik Mining and Rock Solutions, headquartered in Stockholm, Sweden.
Norgalv is a state-of-the-art galvanizing plant and was bought to strengthen the overall supply offered by DSI Underground within the North American market, according to a release.
DSI Underground is Sandvik Mining and Rock Solutions’ Ground Support Division.
There are currently 35 employees at the plant located at the industrial park near Jack Garland Airport. It is the first steel galvanizing plant located in Northern Ontario.
The environmentally friendly, semi-autonomous plant has been operating since January 2021 and officials say it features world-leading technology that makes it the most advanced plant of its kind in all of Ontario.
Norgalv operates from a $21-million, 35,000-square-foot facility, and serves the galvanizing needs of Northern Ontario’s mining supply and service industry.
Norgalv was owned by private individuals and a Canadian private equity fund. It has the capacity to galvanize 30,000 tonnes of steel per annum, and is an existing supplier to DSI Underground in Canada, which represents approximately 50 per cent of its business.
“This acquisition will allow stronger alignment of our core processes within DSI Underground whilst still allowing Norgalv to focus on providing galvanizing services to the general market," said Paul Stephenson, regional CEO of DSI Underground North America.
“The proximity of the Norgalv plant to Ground Support Division’s facility in Sturgeon Falls is also beneficial from a sustainability and cost of transport perspective, and the plant is already recognized as one of the most environmentally/regulatory compliant galvanizing plants in North America."
In hard rock mining applications, ground support products must be galvanized as they are placed into environmentally challenging, corrosive conditions where the Ground Support products need to have a barrier system. Galvanizing is a highly cost-effective process that creates a long-lasting protective coating and ensures product longevity.
“The acquisition of Norgalv represents an excellent opportunity to control crucial aspects of the Ground Support supply chain," said Stephenson. “It builds on a similar success story in Australia, where two galvanizing plants were acquired by DSI Underground in order to bring capability in-house, secure supply and deliver increased value to our customers.
"Norgalv will continue to operate independently, supplying both DSI Underground and its traditional customer base for galvanizing services," adds the release. "It will structurally come under the Ground Support Division, DSI Underground North American operations. This acquisition further strengthens and underpins Sandvik/DSI Underground’s presence and commitment as a local manufacturer and producer of Ground Support products."
“Norgalv is extremely excited to be joining a globally leading supplier of equipment and tools, parts, service, digital solutions and sustainability-driving technologies for the mining and construction industries like Sandvik Mining and Rock Solutions," stated Andre van Soelen, Norgalv, general manager.
“The acquisition will enable Norgalv to maximize the use of our operational capacity, showcase our knowledge and expertise, and see continued growth for the company here in North Bay.”