Historic Scottish engineer Weir Group cashing in on mining industry's net zero drive

Weir Group, the Glasgow-headquartered global mining engineer, is on track to deliver stronger full-year revenues as it supports the industry’s journey to net zero.

In a trading update for the first quarter, bosses at the historic business highlighted strong demand for the company’s mining equipment and flagged growth in constant currency revenue, profit and operating margins. That leaves the firm on track to deliver on its target of 17 per cent operating margin in 2023. Weir can trace its roots back more than 150 years and has undergone major restructuring in recent times to focus on supporting the global mining industry.

The group said the long-term fundamentals for mining and its business were “highly attractive”, underpinned by decarbonisation, GDP growth and the transition to sustainable mining. It added: “We have a clear strategy to grow ahead of our markets, with specific growth initiatives underpinning our ambition to deliver through-cycle mid-to-high single digit percentage revenue growth.” Net debt increased in the quarter “reflecting typical seasonal patterns”, Weir added.

Chief executive Jon Stanton told investors: “The value creation opportunity for Weir is compelling. The mining industry needs to produce more critical metals to support the transition to net zero, and must extract these in a more sustainable way. Our leading global brands, engineering capability and technology-led strategy means we are well placed to capitalise. Our strong execution and order book growth in the first quarter reinforces our confidence in achieving our 2023 guidance. We are on track to deliver another year of growth in revenues and our operating margin target of 17 per cent.”