VDM to close equipment hire business

VDM Group will focus on its mining, trading and construction units of the group after announcing plans to close its equipment hire and sales business.

In a statement today, Perth-based VDM said it had taken the decision to focus its resources on delivering positive returns on its African mining assets, as well as building its trading division.

“In exiting the equipment business, VDM will also withdraw from the joint venture that it operates with Sany South East Asia,” VDM said.

“Sany will continue to serve the Australian equipment market.”

It follows news earlier this year that Dongyi Hua had stepped down as chief executive of VDM to become executive director of the company’s mining division on a part-time basis.

He was succeeded by former BGC Contracting manager Sam Diep.

VDM shares were 25 per cent higher to 0.5 cents each at the close of trade.