22 Sep 2012

Scott Technology looks at mining sector opportunities

1:07 pm on 22 September 2012

Scott Technology is looking at opportunities to branch out further into the mining industry with the planned buy-out of Integrated Conveyor Systems for $A500,000.

The Dunedin-based company says the agreement allows it time to look at Integrated Conveyor Systems' books while allowing Scott to also take effective control.

Due diligence ends in June 2013, at which time Scott has the option to buy the Western Australian firm which designs, manufactures and distributes its flexible enclosed belt conveying system.

Scott says it is currently working with a major mining company which is trialling the innovative conveyor.

Company chief executive Chris Hopkins says the deal will be a bolt-on to the existing business.

He says a key will be taking automation technology into the mining sector where it is highly sought after to reduce costs and improve health and safety aspects.

Mr Hopkins says the technology will add value to some of its existing customers and extend Scott Technology's reach.

He says the deal means Scott will have non-exclusive rights to the technology if it decides not to buy the system and allows the company to minimise the risk and explore how the technology will work with its clients.