"Leading mining companies are transitioning from trucks to conveyor belt systems that are managed remotely from control centers, requiring minimal human oversight."

Germano Ruggeri

CHIEF EXECUTIVE OFFICER, BEUMER GROUP ANDINA

July 12, 2024

Can you give some insight into the integration between Beumer Group and FAM Group?

Beumer Group acquired FAM Group to strengthen its presence in the mining sector by integrating the supply chain from the mine to the port. Previously, Beumer focused on the latter stages of the mining processes, specifically port equipments, and offered conveyor belts that were designed for other applications. By integrating FAM’s expertise in material handling and its robust product line, including large-scale conveyor belts, spreaders, bucket wheels reclaimers/excavators and ship loaders, we have significantly broadened Beumer’s capabilities. Additionally, Beumer’s established line of airport luggage and automated storage management systems – a sector unrelated to FAM –will add a new market niche for our Group in the Peruvian market. 

What have been Beumer Group’s main milestones in Peru in the last year?

We strengthened our presence in the Peruvian cement industry, leveraging on Beumer’s conveyors expertise. 

Moreover, we strengthened our engagement with the mining sector and enhanced our presence in Peruvian ports, where we face significant competition from Chinese firms. 

What is the added value of Beumer Group?

Beumer Group is focusing on advanced technologies, including artificial intelligence and 3D visualization for maintenance. Although we face strong competition from China, especially in lower-value-added products such as steel structures, Beumer’s commitment to environmental sustainability and technological sophistication sets us apart. Our strong local presence also allows us to assist customers in optimizing equipment performance, reducing energy use, and providing lifecycle support for our products. We live and grow close to our clients, making them feel that we are always available to help them.

What are some of the current market opportunities that FAM is pursuing in Peru?

We are actively bidding for projects involving tubular belts in mines and cement plants located near populated areas, where their compact design and logistical efficiency are particularly beneficial in terms of capital and operational costs for our clients. Moreover, following the market changes in maintenance by some competitors that has left this service, we may see a significant opportunity to fill the gap in mining equipment maintenance, a service in high demand in markets like Peru and Chile. We are also entering the port construction sector engaging with mining companies that are investing in these infrastructures.

How is Beumer Group contributing to a more sustainable mining industry through technology and innovation?

We are implementing strategies to reduce the energy consumption of our equipment and minimize atmospheric pollution. For instance, we have integrated solar panels to decrease energy usage for basic functions like lighting. 

There is a noticeable shift in the industry from using gasoline-heavy trucks, which contribute significantly to environmental pollution, to adopting conveyor belts. These belts, especially when powered by green electricity, do not produce environmental pollutants. Our portfolio includes tubular belts, which are both cost-effective and environmentally friendly, and are becoming increasingly favored by our clients.

Leading mining companies are transitioning from trucks to conveyor belt systems that are managed remotely from control centers, requiring minimal human oversight. This shift is advantageous for us as our technologies incorporate artificial intelligence and data analytics, enabling predictive maintenance and the prevention of severe incidents. These advanced technologies not only boost production efficiency but also significantly reduce environmental and safety hazards by limiting the need for direct human interaction with the machinery.

What are the objectives and strategies of the Beumer Group in Peru?

In 2024, our primary goal in Peru is to drive sales growth. In the medium term, we plan to expand our after-sales services, starting with support from Chile and gradually incorporating local Peruvian teams to increase cost efficiency. We have already made quotations for a comprehensive maintenance plan to a major mine in Peru, and we plan to establish a local Peruvian team if we achieve this long-term contract. This would involve training Peruvian personnel under the operational model of FAM in Chile, where we combine a central office in Santiago with maintenance operations in Antofagasta. Our five-year vision is to establish a robust team in Peru, like the more than 200 employees in Antofagasta, dedicated to offering maintenance services to our clients. Finally, we aim to transition from basic labor to offering specialized services that ensure higher profitability. 

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