What is your presence in the South American market?

South America is the fastest-growing market for Hofmann Engineering. In the fiscal year 2022, Hofmann Engineering grew by over 50% in turnover in Chile compared to the previous year, which was a strong signal, and in Peru, we grew by over 20% in the same period. Hofmann Engineering is continuously gaining new clients and diversifying our product areas.

What products are you particularly excited about?

In Chile, we have product areas that have been our core business for many years, such as girth gears and pinions for mill gearing, electric rope shovel transmissions, complete roll assemblies and gearboxes for HPGRs, but in the last year, we entered in the hydraulic excavator critical components and in the crushing market, selling several fully forged cone crusher heads for the Chilean market. We invented this product, manufacturing the crusher heads and utilizing a one piece forging, to be fully machined and with polished/shot peened critical areas. Usually, these are made out of cast steel by the competition and the OEMs and last just around ten months in service. Our first forged crusher head was installed in one of the harshest large operations in Australia four years ago and is still going strong. Since then, we have installed over 35 worldwide, and none have failed.

When will you begin producing HPGRs in Chile?

In June 2023, we will test the new state of the art multi-axle, CNC controlled floor borer with a 50 ton rotary table that will be installed in Chile. The construction works for the machine foundation have already started, and we are also on the approvals stage for our workshop expansion. We have a 10 year plan for expansion in Chile and plan to fully complete the first phase out of three by the end of 2023, allowing us to manufacture the HPGR rolls locally and provide critical and heavy precision machining services for manufacturing and refurbishing of critical components for the mining industry.

Can you describe your commitment to ESG?

Earlier this year, all seven Hofmann Engineering facilities globally were triple certified to ISO standards for quality, safety, and environment including Chile. In this process we have implemented not only recommended guidelines but also the HE group KPIs with ongoing stricter targets.

Also through our service and product improvement commitment, we endeavor to extend the life cycle of products supplied to our customers, not just giving them an excellent return for money but also preventing waste. Less waste in scrap and faulty components means a better carbon footprint for our customers.

In terms of our activity, we are continuously implementing energy management systems to identify consumption areas and utilize energy-efficient equipment.

How does Hofmann center research & development?

Hofmann is continuously investing in R&D. For many years, we have had our own design and engineering department and metallurgical laboratory continuously working on engineering, product conception and product improvement solutions. In the last financial year, our R&D investment exceeded 10% of the company's total turnover.

What makes Chile an excellent location for Hofmann Engineering?

Chile is one of South America's most economically advanced and secure countries – and that is just as a country. In terms of mining, this market is probably the most mature in South America and is still growing. Therefore in my opinion, it is one of South America's best countries for mining operations.

What is your strategy for 2023?

Mining markets can be cyclical. In 2022, our growth of over 50% followed a year in which we did not experience significant growth. Growth is mainly dependent on the timing of the execution of projects and we believe 2023 will be a good year. Chile still has many good opportunities, so we are diversifying our customer database and we are both strengthening our existing product lines and implementing new ones.

As previously mentioned, in 2023 we have an ambitious plan to achieve significant milestones this year in our Chilean Operation, expand the workshop and commission our new state of the art machine, enabling us to manufacture HPGRs and other critical components locally in Chile.