Epiroc buys Schramm assets

Swedish multinational Epiroc has bolstered its ranking as one of WA’s largest mining services companies, after coming to the rescue of local manufacturer Schramm and saving 80 jobs in the process.

Epiroc has bought the business assets of Schramm three months after the Welshpool-based company was placed into voluntary administration.

It will acquire all existing operations at Scramm’s two production facilities in Perth as well as two service centres in Brisbane and Adelaide.

Epiroc has also committed to offer jobs to all existing employees, numbering about 80, and to keep all four Australian manufacturing and repair facilities open.

The purchase price was not disclosed.

It comes two years after Epiroc bought Perth-based mining technology company Kinetic Logging Services, in a deal believed to be worth $150 million.

That purchase added 180 people to Epiroc’s payroll and helped to make it one of the largest mining services companies in WA.

It currently has 800 staff in WA, according to Business News’ Data & Insights.

FTI Consulting, which has been the administrators for Schramm, said the local firm was a world leader in the manufacturer of drill rigs and associated products for reverse circulation drilling.

FTI’s Hayden White said Schramm had continued to trade during the administration to best maximise the outcome for stakeholders.

He said the purchase will open a new chapter for the Schramm brand and build on the knowledge and skills developed through its 123 years of operations.

“This is a great outcome for Schramm’s employees who have responded to the voluntary administration period with determination and commitment to continue to deliver for the company’s customers,” Mr White said.

“Ensuring employees will be retained by a new buyer has been a key focus of the administration process.

“Creditors and the wider exploration and mining industries will continue to be served by a world-class supplier of drilling equipment both domestically and internationally.

“The sale will ensure this globally recognised brand will continue as a significant contributor to the mining industry in Western Australia and globally.

“We wish Epiroc AB, its employees and customers every success for the future.”