Joy Global Inc.
From RitchieWiki
Joy Global Inc. is a company focused on the manufacture of specialized equipment for underground coal mining through its Joy Mining Machinery division, as well as equipment for surface mining of ores and minerals through the P&H Mining Equipment division. The company has an international presence, with representation in the U.S., Europe, Latin America, Australia, South-East Asia, South Africa, and Canada.
[edit] History
[edit] Establishing Pawling & Harnischfeger
The seed that would eventually grow to be Joy Global Inc. was planted on December 1, 1884 by Alonzo Pawling and Henry Harnischfeger.[1] The company, Pawling and Harnischfeger, was a small machine and pattern shop that grew in popularity with the partners’ favorable reputation as craftsmen. Soon, the company was producing equipment for knitting, grain drying, brewing, and brick making. Three years after the company’s inception, Pawling and Harnischfeger were provided with an opportunity for public notice when they improved the design of a crane, made by another company, that had been damaged when it fell during operation, killing an employee. The crane they designed, a safer and more powerful version of the original, quickly became popular and Pawling and P&H, as the company was now known, began receiving multiple orders from across the U.S.[2]
[edit] The Dawn of Harnischfeger Corp.
In 1911, Pawling’s health began to decline, and he made the decision to sell his share of P&H to Harnischfeger. The name of the company was soon changed to Harnischfeger Corp., though Harnischfeger kept the P&H trademark. The following year, Harnischfeger Corp. began making earthmoving equipment, including trenching machines and wheel loaders. Soon, the company began offering crawler-mounted equipment such as backfillers, in addition to wheel-type trenchers.
During World War I, Harnischfeger Corp. focused on producing overhead cranes for the war effort; when the war ended, the company returned its focus to earthmoving. A notable development for the company was the world’s first gas powered dragline. This machine was followed by the development of a shovel-type excavator mounted on crawlers.
[edit] New Product Developments
Following Harnischfeger’s death in 1930, his son Walter became president of Harnischfeger Corp. The new president began developing and improving products, though the market was fragile. The rivets in Harnischfeger cranes and excavators were replaced with an all-welded design, resulting in stronger, less expensive, lighter machines. In 1935, the company unveiled its gas-powered excavators with up to a 0.5 cubic yard (0.38 m3) capacity, and Ward-Leonard drive electric excavators. The 1930s and 1940s saw the diversification of the company, as it started fabricating welding machines, diesel engines, and prefabricated houses.
[edit] Harnischfeger and World War II
Harnischfeger had suffered cutbacks and low production rates before World War II, but gained success with the war’s onset. Not only was its manufacturing plant once again operating at its full capacity, but major additions to the plant were made as well. The cause for the company’s success was the need for cranes able to lift tanks and heavy artillery; for hoists that placed planes on aircraft carriers; and for excavators used in the construction of buildings. In spite of the popularity of Harnischfeger products, the company did not earn a high profit due to a constant lack of materials and skilled laborers.
[edit] Post-war Products
With the close of World War II came success for Harnischfeger, as P&H excavators and overhead and construction cranes were applied to the rebuilding of America. During this period, the company introduced a line of electric mining shovels with simpler controls and factory-installed wiring, enabling faster erection on jobsites.
In 1946, Harnischfeger Corp. developed the Magnetorque electromagnetic brake and control system. This system would be used on smaller shovels for decades after its introduction.[3]
The year 1952 saw the development of the Model 1855, the largest capacity electric dragline available at the time,[4] with up to a 10 cubic yard (7.6 m3) bucket capacity. The Magnetorque magnetic clutch system was included on these machines and applied to digging, hoisting, swinging, and propelling.
In 1954, Harnischfeger Corp. introduced the Model 1800 electric mining shovel. It was the largest P&H machine to date, and included electric control, centralized AC motor drive and other upgrades to its mechanical operation.
[edit] Post-war Expansion
After World War II, Harnischfeger began to gain success overseas; the company developed a network abroad, forming agreements with companies to build Harnischfeger cranes and excavators. In 1952, Harnischfeger Corp. signed an agreement with Rheinstahl Union Brueckenbau in West Germany; in 1955, a deal was made with Kobe Steel in Japan.
In addition to its expansion overseas, the company opened new manufacturing facilities in Michigan, Illinois, and California; the Milwaukee plant was expanded once again. In 1956, the previously family-owned company became a member of the American Stock Exchange.
[edit] Harnischfeger’s New Divisions
In 1959, Walter Harnischfeger was named chairman of the company; his son Henry took over as president. Henry soon decided to pare down the company’s operations to become a more focused company with a stronger competitive edge. Between 1964 and 1968, Harnischfeger Corp. discontinued its line of diesel engines and prefabricated homes. Additionally, divisions selling roadbuilding equipment and welding products were discontinued or sold.
The late 1960s saw the separation of Harnischfeger into two divisions, basically run as separate companies. The construction and mining division was responsible for the production of digging and lifting machines including excavators and cranes. The industrial and electrical division focused on manufacturing things such as overhead cranes, hoists, and electrical motors. Following this division was the improvement of large products—the capacity of P&H mining equipment, for example, had doubled by 1979.[5]
[edit] New Products for Booming Markets
New developments that were introduced by the restructured company included stacker cranes in 1964, designed for the material handling market, and hydraulic backhoes and cranes in 1967 for the thriving construction market. The company’s hydraulic machines were widely popular due to the ease with which they could be operated.[6] 1967 also saw the introduction of a shovel with a maximum dipper capacity of 15 cubic yards (11.4 m3). Two years later, P&H Model 2800 electric shovel, with a 25 cubic yard (19 m3) capacity, was designed for the mining of coal, iron, and copper. The electronically controlled 2800 shovel increased performance and productivity in mining applications.[7]
[edit] Global Expansion
The company’s international growth continued with the establishment of Harnischfeger GmbH in Germany. This newly formed subsidiary had distribution rights in Europe, the Middle East, and North Africa. Thanks to the establishment of Harnischfeger GmbH, the parent company experienced a 15 percent growth in exported materials from 1965 to 1975, from 25 to 40 percent.[8]
[edit] Growth in the 1970s
The company’s stock was listed on the New York Stock Exchange for the first time in 1971. Demand for Harnischfeger machinery remained strong in through the mid-1970s, due to the oil crisis of 1973. The embargo resulted in the opening of new coal reserves, and the building of mass transit systems and oil pipelines. Harnischfeger Corp. began investing in the upgrading of its plants and equipment, as well as focusing on research and development, in 1975. One development in 1976 included the improvement of the Model 2800 shovel, increasing its capacity to 40 cubic yards (30.4 m3).
[edit] The Effects of the Recession
By the late 1970s, an economic recession was setting in, and Harnischfeger Corp. was drastically affected. In response, the company cut its production costs; however, this had little benefit. By 1980, Harnischfeger’s debt was approximately 40 percent of its total capital, and the company lost money for the first time since 1938. By 1982, the company’s sales had dropped by over 30 percent, and it suffered a loss of $77 million. In addition, its workforce had decreased from 8,000 in 1979 to 3,800. The following year, the Harnischfeger Corp. lost another $35 million after closing certain plants and discontinuing several product lines.[9]
[edit] The Presidency of William Goessel
In 1982, Henry Harnischfeger moved into the position of chairman and CEO of the company. Subsequently, presidency of the company was appointed to William Goessel, a former employee of Beloit Corp., a papermaking machinery company in Beloit, Wisconsin. This appointment was significant as it marked the first time in history that the company’s president was not a Harnischfeger.
The year Goessel was named president, some of the company’s manufacturing plants were operating at less than 20 percent of their capacity. It was projected that Harnischfeger would run out of funds in six weeks. To remedy the dismal situation, Goessel closed some operations, laid off employees, and sold surplus inventory. He then began to restructure the company’s finances and operations, implementing computerized systems to replace old technology. Moreover, Goessel sold the construction equipment business that at one time had been the source of almost half of the company’s sales.
Amidst a dwindling crane market and increased presence from competitors, Harnischfeger announced its intention to buy all of its construction cranes from Kobe Steel in 1984. At that time, Kobe owned approximately 10 percent of the company’s stock. That year, as a result of Goessel’s undertakings, the company paid off its debt and finally made a profit.
[edit] The Shift to Material Handling
Once the company had recovered from financial crisis, its focus was shifted to the material handling market. In 1984, a new subsidiary was formed: Harnischfeger Engineers. Soon, General Motors and Nabisco would be customers of this company. The automated material handling systems Harnischfeger produced comprised stacking cranes to retrieve parts in warehouse inventory and vehicles, automatically guided by electric wires. These outfits were designed to unload materials in a receiving dock, steer components through a factory, and send finished products out to be shipped. By the end of 1984, the company was engaged in building a $5 million automated warehouse at a jet engine plant run by General Electric.
[edit] The Acquisition of Beloit Corp.
In 1986, Harnischfeger purchased Beloit Corp., a family-run manufacturer of pulp and papermaking machinery, for $175 million. Approximately seven months after the acquisition, the company was able to sell a 20 percent Beloit share to Mitsubishi for $60 million. Two years after the acquisition took place, Beloit had become Harnischfeger’s most successful and largest unit.[10]
[edit] The Acquisition of Syscon Corp.
By the end of the decade, Harnischfeger had purchased Syscon Corp., a company that produced software to the defense industry, for $92 million. The logic behind this acquisition was that Syscon’s revenue would help to offset the cyclical profits that came with the mining and papermaking industries. By 1990, two years after Syscon was acquired, it was providing systems for the U.S. Department of Labor and Education, and Harnischfeger prospered.
[edit] The Rise and Fall of Paper
Through the late 1980s and early 1990s, Harnischfeger was earning considerable profits from papermaking machinery due to a booming paper industry. Beloit Corp. was responsible for increasing the company’s operations income 65 percent from 1988 to 1989. By the following year, approximately 60 percent of Harnischfeger’s earnings were thanks to papermaking machinery. At this time, Beloit equipment was applied to 70 percent of papermaking applications worldwide.[11] However, the tides would soon turn and the company would suffer the economic effects of a slump in the paper industry. Soon, Harnischfeger decided to buy a 20 percent stake in Measurex Corp., a company that produced industrial process-control systems for the papermaking industry. Beloit would collaborate with Measurex in marketing, sales, and development. The efforts, however, would have little effect.
[edit] Jeffery Grade’s Decisions
In 1991, current leader Goessel passed on his title to Jeffery T. Grade. Grade, who had been president, became the company’s CEO. Goessel remained chairman until 1993, at which point he handed that title to Grade as well.
Grade recognized that sales in mining equipment were quite strong (material handling equipment sales were weakening) and decided to purchase Joy Technologies, an underground mining equipment company, in 1994. Though this was unfamiliar territory for Harnischfeger, Grade wished to enter a market that would offset the effects of the cycles of papermaking equipment sales. In 1996, the company acquired Dobson Park Industries, a British mining equipment company, for $322 million. Neither of the companies Grade had decided to purchase was successful; the acquisition of Joy Technologies resulted in the closing of nine plants in 1996. By 1997, the company’s debt-to-overall-capital ratio had risen to 53 percent,[12] due to Grade’s decisions.
[edit] Harnischfeger Files for Bankruptcy
In addition, a deal with a Singapore-based papermaking company went sour due to cost overruns and an economic recession in parts of Asia. In 1998, Harnischfeger was forced to lay off 20 percent of its employees. In May 1999, Grade left the company; in June, Harnischfeger filed for bankruptcy.
[edit] Recovering from Bankruptcy
John Nils Hanson, Grade’s successor, accomplished the rebuilding of the Harnischfeger Corp. In 1998, the company sold 80 percent of its material handling division to a company called Chartwell Investments. In 2000, the company sold Beloit Corp., and used the proceeds to pay off its debts.
Harnischfeger still had a relatively successful mining equipment division, though its profits had dropped over $100 million from 1997 to 1998.[13] The company had a presence in the Canadian oil sands industry, with machines such as the 4100TS shovel, a high-performance loading machine.
[edit] A New Identity
In 2000, Hanson had devised a recovery plan whereby the company would be a more focused one, directing its attention solely to the manufacture of mining equipment. Harnischfeger was then restructured into two principal divisions: P&H Mining Equipment for surface mining equipment, and Joy Mining Machinery for underground mining equipment. With the company’s emergence from bankruptcy came reorganization, leading to a name change. On July 12, 2001, the company became known as Joy Global Inc.
[edit] New Leadership
In January 2007, following his 65th birthday, John Nils Hanson retired as president and CEO of Joy Global Inc. Hanson, who decided to continue as chairman, passed the titles onto Michael Sutherlin, who had previously served as the president and CEO of Joy Mining Machinery since 2003.[14]
[edit] The Company Today
Today, the publicly traded company’s identity is Joy Global Inc., headquartered in Milwaukee, Wisconsin. Its principal divisions are Joy Mining Machinery and P&H Mining Equipment. The company has more than 40 offices in eight countries, and employs 7,000 people in total.[15] Michael Sutherlin remains the current president and CEO.
P&H Mining Equipment is a market leader in the production of surface mining equipment, comprising the largest active equipment base with over 900 products used around the world. P&H shovels are used in 90 percent of the surface mines around the globe. Additionally, P&H draglines are some of the largest mobile units in the world.[16]
Joy Mining Machinery is the industry leader for cost effective underground coal extraction equipment. Almost 90 percent of the division’s business revolves around the coal industry.[17]
[edit] Equipment List
- Blasthole drill
- Bolter
- Continuous miner
- Dragline
- Electric shovel
- Feeder breaker
- Haulage system
- Longwall system
- Reclaim feeder
- Single roll crusher
- Sizer
[edit] References
- ↑ History. PHMining. 2008-09-09.
- ↑ History. PHMining. 2008-09-09.
- ↑ History. PHMining. 2008-09-09.
- ↑ History. PHMining. 2008-09-09.
- ↑ Harnischfeger Industries. Funding Universe. 2008-09-09.
- ↑ Harnischfeger Industries. 2008-09-09.
- ↑ History. PHMining. 2008-09-09.
- ↑ Harnischfeger Industries. 2008-09-09.
- ↑ Harnischfeger Industries. 2008-09-09.
- ↑ Harnischfeger Industries. 2008-09-09.
- ↑ Harnischfeger Industries. 2008-09-09.
- ↑ Harnischfeger Industries. 2008-09-09.
- ↑ Harnischfeger Industries. Funding Universe. 2008-09-09.
- ↑ Stories. Biz Journals. 2008-09-09.
- ↑ FAQ. Joy Global. 2008-09-09.
- ↑ Pandhmining. Joy Global. 2008-09-09.
- ↑ Company Overview. Joy Global. 2008-09-09.
