ADS forms JV to capture China market

ADS Engineering has signed a joint venture with JAMG Coal Group to supply in-seam gas drainage systems in China and is making inroads into the Australian market after exhibiting at last year’s AIMEX trade show in Sydney.
ADS forms JV to capture China market ADS forms JV to capture China market ADS forms JV to capture China market ADS forms JV to capture China market ADS forms JV to capture China market

Courtesy of ADS Engineering.

Lou Caruana

Its joint venture partners want 275 in-seam drill rig systems over the next five years to meet demand for gas drainage, ADS’s Wayne Parkinson said.

“This will make our company one of the biggest drill rig manufacturers in Australia, eclipsing Valley Longwall International and Industrea,” he told ILN.

“We are also pushing into the Australian market with our new machines and new approach to gas drainage drilling.”

ADS’s current contract in China is worth $30 million this year to supply 10 machines and parts.

ADS was set up twelve months ago by industry veteran Darrell Von Stanke.

In April last year Prime Minister Julia Gillard attended the official ceremony at Parliament House to mark the completion of Shanghai-based Taiyuan Mining Machinery Group Coal Machine’s acquisition of the original Valley Longwall International.

China’s massive coal industry dwarfs Australia’s, providing plenty of expansion opportunities for Valley Longwall’s products and services to a larger underground coal sector.

“The coal industry in China is increasingly seeking to work with suppliers and partners with high safety standards and access to quality technology – both of which are core to VLI’s business,” Valley Longwall chief executive officer Brett Lynch said.

“The signing of this agreement marks a very exciting time for our company and will create tremendous opportunities for all VLI employees.”