Kennametal Inc. (NYSE: KMT), Labtrobe, PA, has agreed to acquire the operating assets of Comercializadora Emura S.R.L. and certain related entities, based in La Paz, Bolivia, while securing related material sourcing agreements. Emura is the region's principal operation engaged in collection, testing, processing and exporting tungsten ore material, and is a long-standing supplier to Kennametal. The company expects to complete the transaction in July.
The acquisition would further Kennametal's efforts to diversify and balance its tungsten sourcing capabilities, following the company's November 2012 announcement outlining plans to develop an advanced carbide recycling facility in the U.S. serving global markets, while also adding tungsten-cobalt powder capabilities at its Tianjin facility to serve growth in Asia.
"Tungsten is a key ingredient for the technologies we develop, and ultimately vital to virtually every kind of manufacturing," said chairman, president and CEO Carlos Cardoso.
Emura currently supplies material Kennametal uses to produce composite alloys and high-performance cutting tools for rugged earthworks applications. The addition of Emura would enhance Kennametal's strategic sourcing of material to serve growth globally without incurring risks associated with owning mining operations.
