BHP has ended its crusher repair services relationship with supplier Wescone, in what the managing director of Wescone’s parent company called a “disappointing” and “unexpected” move.
Wescone parent company Volt Power Group says BHP had decided to use “an alternative engineering services business” to service its existing Wescone W300 sample crusher fleet, and would use non-OEM components for repair and service.
The announcement ends a 25-year relationship, Wescone said.
Volt told the market Wescone sold six new W300-3 sample crushers to BHP in May/June this year, as part of ongoing negotiations which included a proposal for a rental supply business model to ameliorate the capital cost impact of the purchase.
“BHP confirmed their desire to purchase the new crushers and advance good faith negotiations to conclude an ongoing related service contract,” Volt said on September 11.
“To date, these discussions have not achieved a successful result.”
Volt managing director Adam Boyd said Wescone was preparing to trial “significantly improved” wear parts for the W300 sample crusher when BHP informed it of its decision.
“The Volt Board is very disappointed with BHP’s unexpected decision,” Boyd said.
“We are continuing to work with the Wescone vendor to clarify the circumstances that led to the BHP position and outcomes.
“We will continue to make Wescone services available to BHP should they require access to proven and upgraded Wescone OEM components going forward.”