Somewhat less rosy
INDUSTRIAL EQUIPMENT supplier Eqstra will be navigating a difficult situation this year. Eqstra currently distributes the full range of Bucyrus International’s mining equipment in southern Africa, following this group’s 2009 acquisition of Terex Corporation’s mining division. The thorn in Eqstra’s side is competitor Barloworld’s announcement, made towards year-end 2010, that its key partner – Caterpillar – had signed its own US$8,6bn deal with Bucyrus. That’s good news for Barloworld, as the industrial giant is effectively transformed into a onestop mining equipment shop. But the situation for Eqstra is slightly less rosy.
Analysts are concerned Barloworld will use its own distribution channels to market Bucyrus’s extensive range of equipment and bypass Eqstra altogether. Eqstra does have a distribution agreement with Bucyrus until end-2013, and its management says the