Joy Global

Joy Global Inc.

Type	Public (Acquisition by Komatsu Limited pending)
Traded as	NYSE: JOY S&P 400 Component
Industry	Mining
Founded	1884
Headquarters	Milwaukee, Wisconsin
Key people	Edward L. Doheny II (President and Chief Executive Officer)
Products	Surface mining machinery Underground mining machinery
Revenue	US$ 4,403.906 mil (2011)[1][2]
Operating income	US$ 920.179 mil (2011)[1]
Net income	US$ 606.656 mil (2011) [1]
Total assets	US$ 5.429 bil (2011)[1]
Total equity	US$ 1.954 bil (2011)[1]
Number of employees	11,300 (2010)
Subsidiaries	P&H Mining Equipment Joy Mining Machinery
Website	www.joyglobal.com

Joy Global Inc. is an American company that manufactures and services heavy machinery used in underground and surface mining. The company also deals in aftermarket parts.^[3] It is a Fortune 1000 company.^[4]

History

Joy Global Inc. had its beginnings in Milwaukee, Wisconsin. At the time, Milwaukee was a center of industrial machinery manufacturing at the convergence of three rivers entering Lake Michigan. Among the growing number of machinery manufacturing firms in Milwaukee in the 1870s was a struggling firm known as the Whitehill Sewing Machine Company. Alonzo Pawling and Henry Harnischfeger managed castings patternmaking and gear machining operations within the Whitehill factory. Concerned that Whitehill lacked the marketing and manufacturing discipline needed to grow, they formed a machine and pattern shop on December 1, 1884.^[5] to manufacture, assemble and service components and equipment needed by other, larger manufacturing firms in the region.

Alonzo Pawling

Henry Harnischfeger

Joseph Francis Joy.

In 1887, Pawling and Harnischfeger helped rebuild and upgrade an overhead bridge crane within the foundry operations of the Edward P. Allis Manufacturing Company that had collapsed following an attempt to move a load beyond its rated lifting capacity. The rebuilt crane replaced the complex system of ropes and pulleys that failed with a simplified system of motors and gearboxes. Soon after, Pawling and Harnischfeger began building their own line of overhead cranes for manufacturing and warehouse operations.

A bank panic in 1893 caused demand to fall for the cranes designed and built by Pawling and Harnischfeger, who were referred to by customers “P&H”. The partners decided to expand their product line to include earthmoving machines in order to increase their ability to withstand the next economic downturn. That same year P&H acquired the motors and controls manufacturing assets of the Gibb Electric Company following the acquisition of Gibb by Westinghouse Electric Manufacturing Company, as Pawling and Harnischfeger wanted greater control over the application of motors applied to their crane line.

Meanwhile in Cumberland, Maryland, 12-year-old Joseph Francis Joy went to work as a slate picker in a coal mine, eventually working underground with picks, hand-held drilling augers and shovels to load coal into rail-mounted cars. By 1903, the 20-year-old was learning mechanical engineering via a mail-order course and tinkering with ideas for mechanizing the coal-mining process. Joy’s designs attracted no interest from underground coal mines at first, but the Pittsburgh Coal Company in 1916 saw the potential productivity gains that might be obtained by investing in a Joy gathering-arm type loader. Joy obtained a U.S. patent on his device in 1919 and launched Joy Mining Machinery.

In Milwaukee, Pawling & Harnischfeger became known as the Harnischfeger Corporation following the death of Alonzo Pawling in 1911.^[6] By the mid-1920s, the firm had become a large and growing supplier of crawler-mounted shovels and cranes used in construction and mining operations. Over the ensuing decades, P&H-trademarked shovels and cranes grew in size, capacity and drives and controls technology. The firm expanded its product line with the onset of the Great Depression, adding welding machinery, diesel engines and prefabricated homes to its P&H line of shovels and cranes.

By the 1960s and 1970s, the firm had divested its welding, diesel engines, and prefabricated homes businesses in order to concentrate on construction and mining machines, overhead cranes, hoists, and material handing systems. Recessions in the 1970s and 1980s led the firm to shift its strategic focus to include pulp and papermaking machinery and systems and computer systems applied to military and aerospace systems.

By 1983, the company had evolved into a conglomerate corporation known as Harnischfeger Industries, Inc. In 1986, Harnischfeger acquired the Beloit Corporation, a pulp and papermaking firm, and Syscon Corporation, a Washington DC-based computer systems supplier.

In 1994, Harnischfeger Industries, Inc. bought Joy Mining Machinery for $700 million.^[7] Joy was a supplier of underground mining equipment based in Franklin, Pennsylvania. Harnischfeger divested the P&H overhead cranes and hoist business in 1997. That business continues with P&H-trademarked cranes and hoists supplied and supported by Morris Material Handling Inc. based in Oak Creek, Wisconsin.^[8]

In 1997, a currency devaluation crisis in Southeast Asia led to the collapse of a major paper manufacturing business based in Indonesia and the subsequent default on numerous contracts valued in excess of US$5.25 billion. One of those contracts valued in excess of US$250 million was held by Harnischfeger Industries’ Beloit Corporation subsidiary. As a result, Harnischfeger Industries entered Chapter 11 bankruptcy.^[9]

Joy Global Inc. became the direct successor to Harnischfeger Industries, Inc. upon emergence from the Chapter 11 financial restructuring process on July 12, 2001. Joy Global would go forward as a supplier of equipment and life cycle management service support solutions for the global mining industry through its subsidiaries, P&H Mining Equipment, concentrating on surface mining operations, and Joy Mining Machinery, focusing on underground mining operations. Profit rose to $744 million over the next six years.^[10]

In 2011 Joy Global acquired LeTourneau Technologies, the mining equipment and drilling systems business unit of Rowan Companies, Inc. The acquisition expanded the scope of Joy Global by adding high-capacity LeTourneau front-end loaders for mining operations.^[11] Later that year Joy Global divested the LeTourneau drilling products business to Cameron International Corp., with the proceeds from that transaction used to acquire Chinese mining equipment maker International Mining Machinery Holdings Ltd.^[12]

In 2011 Joy Global acquired a 41 percent stake in International Mining Machinery Holdings Ltd. (ICMHF) for US $585 million,^[13] with plans to obtain the remaining shares of the China-based mining equipment manufacturer through a tender offer. International Mining is one of China’s biggest manufacturers of long-wall mining shearers for extracting coal from underground mines. Acquisition of International Mining provided Joy Global with expanded access to China’s coal-mining machinery market. Later in 2011, Joy Global acquired an additional 10.5 percent of the outstanding shares of International Mining,^[14] contingent on the approval of China’s Anti-Monopoly Bureau of the government’s Ministry of Commerce.^[15]

On 21 July 2016, Komatsu Limited agreed to buy Joy Global Inc. for $2.89 billion, or $28.30 a share in cash through funds on hand and bank loans, 20% premium over the company's closing price of $23.55 on 20 July. The acquisition procedure will be finished on mid-2017.^[16][17]

Key dates and events

• 1893
  • Westinghouse Electric Company buys its main competition, the Gibbs Electric Company; Pauling and Harnischfeger acquire Gibbs' machinery for making motors and controls and use it to create AC and DC controls for their cranes.
  • Bank panic forces P&H to enter the digging machines market to expand its customer base. The pavement cutter was the first in a long line of surface mining products.
• 1914: Pawling dies; P&H Mining is renamed Harnischfeger Corp.
• 1910: Harnischfeger Corp. launches earth moving machinery line, starting with trenchers and eventually including power shovels and draglines.
• 1956: Harnischfeger Corp. stock is listed on the American Exchange.
• 1999: Harnischfeger Corp. seeks bankruptcy court protection
• 1986/2001: Harnischfeger acquires the Beloit Corporation for $175 million and auctions off the subsidiary in pieces in 2001 as part of its financial reorganization.

Operations

Joy Global markets equipment to underground mine operations using the “Joy” products trademark.^[18] Surface mining equipment is marketed using the “P&H” products trademark.^[19]

Joy Global's underground business gets 90% of its revenue from coal projects,^[3] and from the manufacture of underground mining equipment.^[20]

In 2011 underground mining machinery accounted for 60.5% of Joy Global's revenue (excluding LeTourneau) up from 60.3% in 2010.^[1]

Underground mining machinery

Joy Mining Machinery (Joy) is the world’s largest producer of high productivity underground mining machinery for the extraction of coal and other bedded materials including trona and salt. Joy operates major support facilities in Australia, South Africa, United Kingdom, China and the United States, with sales offices and service facilities in India, Poland and Russia – all near or within major underground mining regions.

Joy products include:

• Continuous miners – electric, self-propelled digging machines that cut material using carbide-tipped bits on a horizontal rotating drum.
• Longwall shearers – a material-cutting machine that moves back and forth on an armored face conveyor running parallel to the coal or other material being mined. Using carbide-tipped bits on cutting drums at each end, the shearer cuts a 1.2-meter to 6.5-meter swath of material on each pass of longwall mining and simultaneously loads the material onto a conveyor belt.
• Powered roof supports – to provide an open work space shielded against mine roof collapse, roof supports use powerful hydraulic cylinders to elevate and hold strong, thick steel plates in a horizontal position to protect the longwall shearer and armored face conveyor. The supports advance with the longwall shearer and armored face conveyor units, resulting in controlled roof falls behind the supports. A longwall face may range up to 400 meters in length.
• Armored face conveyors – material handling conveyors that transport material cut by the shearer away from the longwall face.
• Shuttle cars – low-profile, electric-powered, rubber-tire material haulage vehicles that transport up to 22 metric tons of coal and other material from continuous miners to the main mine run-out conveyor belt, discharging their material loads with the help of on-board chain conveyors.
• Flexible conveyor trains – electric-powered, self-propelled conveyor systems available in lengths up to 570 feet / 174 meters and capable of being configured into multiple 90-degree turns to help move material out of an underground mine operation.
• Roof bolters – drilling rigs that bore holes into an underground mine roof, making possible the insertion of long metal bolts to help reinforce the mine roof.
• Battery haulers – battery-powered material haulage cars similar to shuttle cars.
• Continuous haulage systems – unlike the pulsed, batch load throughput made possible by usage of shuttle cars and battery haulers, continuous haulage systems feature a connected series of bridge structures that utilize chain conveyors to obtain continuous throughput of material from the mine face to the main mine load-out conveyor belts.

Joy Mining Machinery operates a global network of service centers and warehouses to help underground mining operations obtain high levels of equipment and mining systems reliability and productivity. Joy applies a “life cycle management” strategy to help optimize the utility and potential life of the equipment it designs, builds and supports for underground mining operations, all of which pursue a high-efficiency, high-throughput strategy to obtain lowest-possible cost-per-ton production of coal, salt, trona and other materials. Life cycle management support includes 24/7 emergency repairs as well as preventive maintenance, performance-enhancing upgrades, rebuilds and relocations, and also remote health monitoring systems aimed at minimizing machine downtime through rapid diagnosis and correction of equipment faults and breakdowns.

Surface mining equipment

P&H Mining Equipment is a supplier of equipment and service support to the global surface mining industry. P&H shovels, drills and draglines are applied to copper, coal, iron ore, oil sands, gold, phosphates, molybdenum and diamond mining operations.

P&H Mining products include:

• Electric mining shovels – with working weights in excess of 1,645 tons / 1,492 metric tons and powered by electric motors linked to planetary and case-type transmissions, P&H electric can move up to 120 tons / 109 metric tons of material every 30 seconds from the mine face into the waiting tray of a nearby haul truck or in-pit crushing-conveying system hopper. P&H shovel dippers range in size from 12 cubic yards / 9 cubic meters up to 82 cubic yards / 63 cubic meters.
• Blast hole drilling rigs – hard rock formations are typically found within surface mining operations and they must undergo drilling and blasting in order to fragment the rock for easier digging, crushing and refining processes within the mine operation. P&H blast hole drilling rigs apply either electricity or diesel power to obtain three forces needed to advance a tri-cone drill bit into hard rock: “pulldown” or downward bit-loading force, high-torque rotary force, and large volumes of “bailing air” needed to cool the tri-cone bit and evacuate or push rock chips, particles and dust toward the top of the tubular blast hole. When a grid of blast holes has been drilled, each hole is loaded with explosives and then carefully detonated in order to shatter and fragment the rock formation with a high-energy shock wave. Drills typically work ahead of advancing shovel-truck fleets in surface mine operations.
• Walking draglines – with working weights in excess of 6,000 tons / 5,440 metric tons and powered by large electric motors, a dragline excavator rests on large, flat, cylindrical steel “tubs” and equipped with football field-length booms and buckets large enough to hold several sport utility vehicles, walking draglines use hoist, swing and drag forces to cast their buckets out to the next targeted area from which earth needs to be gathered up and moved. They then apply inward “drag” force to quickly load the bucket, and then hoist and swing forces to cast-dump the material onto a nearby spoil pile. Draglines are used primarily to strip large volumes of overburden away from thick seams of coal. They are also a prime mover in phosphate mining operations.
• In-pit crushing-conveying systems – P&H is developing in-pit crushing-conveying systems that enable shovels to load a mobile mining crusher with material. That material is then relayed via a series of conveyors to spoil piles elsewhere in coal mine operations before the mine taps those spoil piles later on to reclaim mined lands.

P&H Mining Equipment provides a network of P&H MinePro services mine operations service support workshops, warehouses and teams of mechanics, electricians and welders. MinePro provides life cycle management support for P&H and other brands of mining equipment.

Crushing and conveying equipment

In 2008 Joy Global acquired N.E.S. Investment Co. and its wholly owned subsidiary, Continental Crushing & Conveying (CCC), a supplier of material crushing and conveying systems for surface mining operations. In 2009 the company integrated CCC into the Joy Mining Machinery operating subsidiary. The CCC equipment and systems have since been applied to both Joy Mining Machinery underground equipment and P&H Mining Equipment surface mining equipment.

References