BY SCOTT HUNTER HADDOW
The exploration world has a home in North Bay.
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Frank Loberto is a machine assembly technician at Atlas Copco Exploration in North Bay. |
It all started in 1992 when Atlas Copco, which is headquartered in Sweden, jumped into the exploration industry by purchasing Craelius, a leading manufacturer of diamond drill bits. This acquisition created a new subsidiary for Atlas Copco, a global mining supply and service company. This new division became known as Atlas Copco Exploration, which is now headquartered in North Bay.
Among its acquisitions, in 1998, Atlas Copco Exploration added another high profile manufacturer to the fold, JKS Boyles.
"JKS (manufactured) surface rigs and complimented Craelius, which was mainly underground drilling," says Bob Fassl, general manager of Atlas Copco Exploration in North Bay.
As the new century turned, Atlas Copco Exploration purchased Hobic, another diamond drill bit manufacturer. In 2001, Christensen was lumped into the portfolio.
The Hobic factory in Vancouver and the Christensen factory in Salt Lake City, Utah closed, and in 2002 Atlas consolidated the manufacturing to North Bay in the old JKS Boyles factory.
"It brought together the top technology in the market and the most known brands in the world to one place," says Fassl. "It gives us more muscle in the industry."
The move brought employment to North Bay, creating jobs for about 80 people at Atlas Copco Exploration.
"North Bay is a good home for us," says Fassl. "There was a lot of labour available for us with North Bay downsizing its industrial base and it is not as expensive as Toronto."
In the exploration supply business, having the right infrastructure to transport goods and services is crucial, he says.
"It is a question of having the capacity to produce and distribute the product, rather than a question of where you are."
There are many benefits to having production centralized, he adds.
"It costs less to operate because to run a full fledge separate company these days is tough if you are not centralized in this industry," says Fassl. "It is a niche business with very highly customized equipment."
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BOB FASSL |
The consolidation gives Atlas the opportunity to invest in innovation in products and manufacturing. It also offers benefits for customers.
"We were able to offer a better service to the customer base when we centralized," says Fassl. "We have a better opportunity to centralize stock, distribution and offer seven day a week service."
Atlas Copco Exploration has customers all over the world in Africa, Asia, South America and North America.
The future in North Bay looks bright, Fassl says.
"Business is picking up, but has a long way to go," says Fassl. "In 1997 there was $5 billion spent on exploration and last year there was only $2 billion."
Fassl states this was one of the reasons for the consolidations in the industry.
"There was no more room for these free-standing companies because production capacity was three or four times more than the market required."
If current market conditions are any indication of things to come, it may lead to a boom in business, he notes.
"Gold prices are up, which drives the market, and we will see if copper can follow suit," says Fassl. "We could see a bonanza."
Atlas Copco Exploration has its eyes set on new markets for the future.
"We will be looking to expand into new markets in the exploration industry, but nothing is official yet," says Fassl. "The future is what keeps us alive."
