Weir Group

Last updated

The Weir Group PLC
Company type Public
Industry Engineering
Founded1871
Headquarters Glasgow, Scotland, UK
Key people
Charles Berry, (Chairman)
Jon Stanton, (CEO)
William Weir, 3rd Viscount Weir, (Former Chairman)
RevenueIncrease2.svg £2,636.0 million (2023) [1]
Increase2.svg £458.8 million (2023) [1]
Increase2.svg £228.6 million (2023) [1]
Number of employees
11,000 (2024) [2]
Website www.global.weir

The Weir Group plc is a Scottish multinational engineering company headquartered in Glasgow, Scotland. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

Contents

History

Weir boiler feedwater pump Weir boiler feed water pump.jpg
Weir boiler feedwater pump

The company was established in 1871 as an engineering firm by two brothers, George and James Weir, founding G. & J. Weir Ltd. [3] The Weir brothers produced numerous groundbreaking inventions in pumping equipment, primarily for the Clyde shipyards and the steam ships built there. These pumps became extremely well known for their use as boiler feedwater pumps, and for ship's auxiliary equipment such as evaporators. [4]

During 1886, the company established a new machine shop in Cathcart alongside a recently extended railway line. [5] Under the leadership of W D Weir, the company turned to producing munitions and war materiel during the First World War. In addition to shells, it manufactured aero-engines and whole aircraft, including the Royal Aircraft Factory F.E.2 fighter and bomber. [6] By the end of the conflict, in excess of 1,100 aircraft had been completed by the firm. [5]

During the interwar period, James George Weir (aviator, son of James Galloway Weir) a director of the company formed the Cierva Autogiro Company. G & J Weir would be a financial supporter of the company during its existence. [7] In 1943, the firm provided the finances for the construction of the W.9, an experimental helicopter, to Air Ministry requirements. [8]

The company was first listed on the London Stock Exchange in 1946. [3] By this time, double-acting Weir steam pumps had become virtually standard fitment on British-built steamships, being used for pumping water, fuel, air and numerous other materials, as well as being widely used on numerous foreign-built ships, well into the 1950s. [9]

In December 1968, Weir Group issued an offer to purchase the rival British pump manufacturer Worthington-Simpson, following an offer by Studebaker-Worthington. [10] During 1969, Studebaker-Worthington acquired Worthington-Simpson. [11] After some negotiation, Weir's acquired 50% of Worthington Simpson. [12] A new joint-venture company named Worthington Weir was set up to handle international sales of the two parent companies. [13] The debt taken on by Weir to acquire their share of Worthington-Simpson was denominated in Deutsche Marks, and as that currency strengthened against both the Sterling and the Dollar, it became increasingly expensive to service. [14] While Worthington-Simpson was a profitable venture, it did not cover the cost of this debt. [15]

In response to the company's debt burden, Weir Group was compelled to sell off numerous assets and undertook financial reorganization in 1981. [16] Following this reorganization, Derald Ruttenberg and Jacob Rothschild gained effective control of 40% of the company; Ruttenberg became a board member. [17] Amid the reorganization, the 3rd Viscount Weir, who had been chairman since 1972, stepped down to vice chairman. However, Lord Weir regained the chairmanship in 1983 and served in this role until 1999. [18]

During 1989, the company acquired Hopkinsons, an Huddersfield-based company manufacturing valves and controls. [19] [20]

21st century

First Minister of Scotland Alex Salmond visiting a Weir facility in Dubai in 2011 First Minister meets employees at Weir Oil and Gas in Dubai (6305733354).jpg
First Minister of Scotland Alex Salmond visiting a Weir facility in Dubai in 2011

During July 2005, Weir sold its desalination and water treatment businesses, (Weir Westgarth, Weir Entropie and Weir Envig) to Veolia Water Systems, part of the water division of Veolia Environnement: Weir Westgarth had been a pioneer of the multi-stage flash distillation process used predominantly to produce desalinated water from seawater. [22] During May 2007, the company sold its Glasgow-based business Weir Pumps to Jim McColl's Clyde Blowers plc, with the pump company subsequently being renamed to Clyde Pumps Ltd. [23] [24]

In early 2006, it was reported that, amid allegations that the company had paid a multi-million pound bribe to Saddam Hussein's Iraq, Weir Group acknowledged that it had parted company with several employees over the claims. [25] In December 2010, Weir Group pleaded guilty to breaching UN sanctions imposed on Iraq between 2000 and 2002. Judge Lord Carloway of The High Court in Edinburgh fined the company £3m along with a confiscation order of £13.9m. [26] [27] Following this judgement, the company continued to operate in Iraq. [28]

In 2010, Weir Group formed an agreement with the Japanse conglomerate Mitsubishi Heavy Industries to cooperate on pump-related work on new nuclear power stations. [29]

During August 2011, the company announced record profits of £178 million, having risen during the first six months of the year by 24%; orders were also up substantially. [30] One year later, the firm was involved in a bidding war for the Australian mining company Ludowici, but was ultimately outbid by the Danish engineering firm FLSmidth. [31] [32]

In 2014, Weir Group sought to discuss an envisioned merger between itself and the Finnish engineering firm Metso Corporation; however, the board of the latter unanimously rejected the initiative. [33] A £3.7 billion bid to takeover Metso was similiarly unsuccessful. [34] [35]

During February 2015, the company issued a profit warning predicting significant losses after the US shale market went through a contraction. In response, Weir Group opted to reduce its workforce by approximately 650. [36] [37] Due to the persistence of the oil market's downturn, further jobs cuts followed in late 2019. [38]

In February 2019, the company sold their flow control division to First Reserve. [39] That sane year, Weir Group was awarded its largest ever order, valued at £100m, to supply mining equipment for a large iron ore scheme in Western Australia. [40] [41]

During the late 2010s, Weir Group decided to, following losses in its US-centric oil and gas activities, it would reorientate towards the mining industry, for which it was developing new technologies to reduce environmental impact. [42] During October 2020, the company sold their oil and gas division to the American equipment manufacturer Caterpillar Inc. in exchange for $405 million. [43] [44]

In April 2022, the company announced that it was withdrawing from its business activities within Russia following the Russian Invasion of Ukraine. [45] That same year, Weir Group formed an alliance with Swiss Tower Mills Minerals AG to market the latter's vertical stirred grinding mills. [46]

Acquisitions
TransactionDate
Purchased Pompe Gabbioneta, an Italian pump manufacturer for £69m in 2005. [47] 2005
Weir Group acquired SPM Flow Control, Inc for US$653 million (£328 million). SPM manufactures high-pressure well service pumps

and related flow control equipment [48]

2007
Acquired African pumps business, CH Warman Pump Group for $231m (£113m) [49] 2007
Acquired Mesa Manufacturing Inc, the Texan based pump manufacturer for $40m [50] 2008
Bought Malaysia-based Linatex for £138m [51] 2010
Agreed to acquire Indian valves manufacturing business, BDK Engineering Industries, Hubli [52] 2010
Announced the acquisition of American Hydro Corporation, a manufacturer of turbines for hydro-electric power stations. [53] 2010
Weir Group and Shengli Oilfield Highland Petroleum Equipment Co. announced the formation of a joint venture to provide high-pressure well service pumps and related flow control equipment to the developing shale gas industry in China. [54] 2010
Agreed to acquire a 60% interest in the South Korean valves business formerly operated by HIM Tech Co Ltd. [55] 2011
Purchased Seaboard Holdings Inc a Houston-based wellhead solutions provider for US$675m (£431m) [56] 2011
Purchased KOP Surface Products, a Singapore provider of advanced pressure control wellhead technologies, systems and services for an enterprise value of US $114m [57] 2017
Purchased ESCO Corporation, a Portland-based global leader in ground engaging tools for mining and construction markets for an enterprise value of US $1.285 billion [58] 2018
Purchased Motion Metrics, a leading Canada-based global mining technology business, for an initial consideration of US $119m [59] 2021
Acquisition of SentianAI, a Swedish-based developer of artificial intelligence solutions. [60] 2023
GEHO pump assembly

People

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References

Citations

  1. 1 2 3 "Annual Results 2023" (PDF). Weir Group. Retrieved 29 February 2024.
  2. ↑ "About Weir". Weir Group. Retrieved 12 February 2024.
  3. 1 2 "Weir Group: Fact Sheet". Archived from the original on 21 September 2003. Retrieved 1 November 2008.
  4. ↑ Weir's Boiler-feeding Specialties: Patent, Feed-water Heaters, Direct-acting Feed Pumps, Evaporators, Etc, catalogue, 1904.
  5. 1 2 "Our History =". Weir Group. Retrieved 3 August 2024.
  6. ↑ Miller, James F (2014). FE 2b/d vs Albatros Scouts: Western Front 1916-17. Osprey. p. 13. ISBN   978-1780963259.[ permanent dead link ]
  7. ↑ "The Auto-Gyro. English Company Formed". News. The Times. No. 44232. London. 29 March 1926. col c, p. 21.
  8. ↑ "Cierva", Flight: 340, 17 April 1947
  9. ↑ Sennett, Richard; Oram, Henry (1899). Marine Steam Engines. Sagwan Press. p. 389. ISBN   978-1297921469.
  10. ↑ Weir 2008, p. 84.
  11. ↑ A History of Excellence: Flowserve.
  12. ↑ Weir 2008, p. 86.
  13. ↑ Worthington Simpson: Grace's Guide.
  14. ↑ Weir 2008, p. 110.
  15. ↑ Weir 2008, p. 111.
  16. ↑ Weir 2008, p. xvii.
  17. ↑ Weir 2008, pp. 144–145.
  18. ↑ Who's Who, 1985 edition page 2029 and 2009 edition page 2457
  19. ↑ "Hopkinsons". www.gracesguide.co.uk. Retrieved 17 July 2016.
  20. ↑ "Weir Valves & Controls UK Ltd.: Private Company Information - Businessweek". bloomberg.com. Retrieved 17 July 2016.
  21. ↑ "Weir Group to invest £4m in Dubai base". BBC News. 2 November 2011. Retrieved 1 November 2021.
  22. ↑ "Weir Group to sell water treatment businesses to Veolia". findarticles.com. July 2005.
  23. ↑ "BBC NEWS - UK - Scotland - Glasgow and West - Former apprentice buys Weir pumps". bbc.co.uk. Retrieved 21 March 2015.
  24. ↑ "Businessman Jim McColl sells Clyde Union Pumps for £750m". BBC News . 25 August 2011. Retrieved 29 March 2018.
  25. ↑ "Weir Group parts company with staff over Iraq debacle". heraldscotland.com. 22 March 2006.
  26. ↑ "Weir Group fined £3m over Saddam sanctions breaches". BBC News. 15 December 2010.
  27. ↑ "Crown Secures record £13.9 million as Weir Group convicted of paying kickbacks for Iraq contracts" (PDF). star.worldbank.org. 10 December 2010.
  28. ↑ "Weir Group secures £59m Iraq oilfield deal". BBC News. 24 January 2014.
  29. ↑ "Weir Group in nuclear agreement". BBC News. 27 May 2010.
  30. ↑ "Engineering firm Weir Group unveils record profits". BBC News. 2 August 2011.
  31. ↑ "Weir's bidding war continues over Ludowici". moneyweek.com. 29 February 2012.
  32. ↑ "Weir Group abandons Australian takeover bid". BBC News. 13 March 2012.
  33. ↑ "Weir Group merger bid rejected by Finnish firm Metso". BBC News. 16 April 2014.
  34. ↑ Leftly, Mark (28 May 2014). "Metso rejects Weir £3.7bn takeover bid". The Independent.
  35. ↑ Lea, Robert; Ralph, Alex (29 May 2014). "Metso rejection scuppers Weir merger plan". The Times.
  36. ↑ Williams-Grut, Oscar (25 February 2015). "Weir tumbles on oil woes but fails to floor FTSE". London Evening Standard . p. 41.
  37. ↑ "Weir Group to axe 400 jobs in bid to cut costs". BBC News. 3 November 2015.
  38. ↑ "Weir Group axes 450 US oil and gas division jobs". BBC News. 5 November 2019.
  39. ↑ "Weir Group to sell oil & gas division to Caterpillar, shares surge". Reuters . 5 October 2020.
  40. ↑ "Weir Group wins 'record' £100m mining order in Australia". BBC News. 6 September 2019.
  41. ↑ CREAGH, BEN (9 September 2019). "Weir secures largest-ever mining order with Fortescue". australianmining.com.au.
  42. ↑ Black, Andrew (26 February 2020). "Weir Group to focus on mining after oil losses". BBC News.
  43. ↑ "Weir agrees sale of flow control division for £275m". energyvoice.com. 25 February 2019.
  44. ↑ "Caterpillar to acquire Weir Oil & Gas in $405 million cash deal". worldoil.com. 6 October 2020.
  45. ↑ "War in Ukraine: Engineering giant to pull out of Russia". BBC News. 28 April 2022.
  46. ↑ EASTWOOD, ALEXANDRA (27 September 2022). "Weir and STM Minerals to accelerate sustainable mining". australianmining.com.au.
  47. ↑ "Weir splashes out in oil takeover". findarticles.com.
  48. ↑ "Weir to buy SPM Flow Control for $653 million". marketwatch.com. 21 June 2007. Archived from the original on 12 July 2012.
  49. ↑ Pump Purchase [ permanent dead link ] The Engineer, 4 December 2007
  50. ↑ "Weir Group buys Mesa Manufacturing". growthbusiness.co.uk. 24 June 2008.
  51. ↑ "Weir to buy Malaysian Linatex Group for $172.5 million; sees higher H2 profit". International Business Times. 14 June 2010.[ permanent dead link ]
  52. ↑ "UK-based Weir Group buys BDK Engineering's valve biz". Press Trust of India. 2 September 2010.
  53. ↑ "Weir Group acquires American hydro firm". Added Latest acquisition. BBC News. 18 November 2010. Retrieved 19 November 2010.
  54. ↑ "Weir and Shengli announces joint venture to provide services to gas industry". China Greentech Initiative. 25 November 2010.
  55. ↑ "Weir Group acquires South Korean valves business". BBC News. 22 June 2011.
  56. ↑ "Weir buys US firm in £431m deal". BBC News. 23 November 2011.
  57. ↑ "StackPath". Global.weir. Retrieved 20 March 2019.
  58. ↑ "ESCO Corporation to Join Leading Global Engineering Company Weir" (Press release). Global News Wire. 19 April 2018.
  59. ↑ "Weir to acquire AI, machine vision leader Motion Metrics". Mining.com. 8 November 2021.
  60. ↑ EASTWOOD, ALEXANDRA (28 November 2023). "Weir acquires SentianAI". australianmining.com.au.

Bibliography

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