Weir to Acquire ESEL, Strengthening Manufacturing Capabilities and Accelerating Growth in Chile
[Click image to enlarge]
Weir has entered into a binding agreement to acquire the remaining 50 percent share of its Chile-based joint venture ESCO Elecmetal Fundición Limitada (ESEL) for $75 million. The acquisition will strengthen Weir’s direct market channels and manufacturing capabilities in South America and accelerate the long-term market growth opportunity for Weir in the LATAM region.
“We are delighted to have reached this agreement to acquire the remaining share of our ESEL joint venture in Chile following a long and successful partnership with Elecmetal. This strategic move strengthens our ability to serve customers across South America, expands our foundry capacity in the region and with our world-class engineering capabilities, will enable further optimization of our manufacturing footprint globally,” said Jon Stanton, CEO Weir.
“The transaction will also accelerate our go-direct strategy in Chile, mirroring the success we’ve achieved in other ESCO geographies. With full operational control, we will enhance our Weir network to grow market share and capitalize on Chile’s long-term structural tailwinds in mining, particularly in copper,” added Stanton.
Established in 2007, ESEL is a joint venture between Weir’s ESCO division and Elecmetal, a global metallurgical company headquartered in Chile, created to distribute ground engaging tools for the South American mining industry. Its operations, which include a foundry in Chile and built in 2012, will extend the company’s global manufacturing footprint and support further capacity optimization across its foundry network by leveraging Weir’s world-class engineering and supply chain expertise.
This acquisition enables Weir to transition to a direct-to-customer model in this important mining market with strong structural drivers. The acquisition will accelerate ESCO’s proven go-direct strategy supporting the division’s growth and market share in the region with Weir’s best in class technology and customer intimacy.
The transaction is expected to complete in Q1 2026, subject to customary commercial conditions. Post-completion, the business will be integrated into the South American region within our ESCO division.
The Weir Group produces and sells highly engineered original equipment worldwide. It operates in two segments, minerals and ESCO. The minerals segment offers engineering, manufacturing, and service processing technology for the use in abrasive high-wear mining applications; and differentiated technology for the use in infrastructure and general industrial markets. The ESCO segment provides ground engaging tools for large mining machines. This segment also offers cloud-based artificial intelligence solutions to the mining industry; manufactures and distributes highly engineered wear parts; and offers aftermarket services to the mining industry.
Be in-the-know when you’re on-the-go!
FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.
Copyright © 2025 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
For licensing permission, .(JavaScript must be enabled to view this email address)
