In the ever-evolving landscape of the mining industry, HEPI (formerly H-E Parts International) is making waves with its strategic moves and ambitious growth plans. The company’s recent rebranding to HEPI, standing for Heavy Equipment Parts International, signals a bold step towards global consolidation and market penetration. This shift is not just about a name change; it’s about streamlining operations, enhancing brand recognition, and delivering a unified range of solutions to the mining sector.
HEPI’s footprint in South America is particularly noteworthy. With facilities in Peru and a strategic hub in Antofagasta, Chile, the company is well-positioned to serve the region’s burgeoning mining industry. Javier Varela, HEPI’s Vice President for South America, highlighted the strategic importance of these locations. “We have two locations in Peru – one in Arequipa and one in Lima. In Chile, we have a large facility in Antofagasta, opened in 2018. These facilities offer component repair for both surface mobile mining equipment and fixed crushers, supplying wear parts and service solutions,” Varela explained. The Antofagasta facility, in particular, is a game-changer. Situated on Route 26, approximately 15 km from Antofagasta, it provides HEPI with the productive space and capabilities to triple its current production levels. This strategic investment underscores HEPI’s commitment to the region and its readiness to meet the growing demand for mining equipment and services.
HEPI’s approach to the market is both nuanced and aggressive. In Chile, the company is strong in hydraulic solutions, hoses, lubrication, and operator cabin components. In Peru, the focus is on component repair and engineered product solutions. This tailored approach allows HEPI to address the unique needs of each market effectively. Varela noted the differences between the two markets: “In Peru, less than ten large mines cover over 90% of the market, whereas in Chile, it is well over 20 mines. About 80% of decisions for the parts and services we offer are made by procurement teams in the mining groups, especially for larger and higher CAPEX solutions; with 20% by daily operations and maintenance teams for spare parts.”
Benjamin Bowlware, HEPI’s Global Marketing Director, emphasized the company’s role in the aftermarket period. “There’s a point in the equipment life cycle – typically after the OEM warranty ends – when customers begin exploring alternatives. That’s where we step in. As a trusted aftermarket provider, we offer solutions that help maintain performance while supporting efforts to lower total cost of ownership.” This focus on the aftermarket is crucial, as it allows HEPI to provide high-performance, cost-effective solutions that extend the life of mining equipment and reduce downtime.
HEPI’s growth strategy is a blend of organic expansion and strategic acquisitions. The company has acquired several brands and businesses in key mining markets, which has led to a diverse range of offerings. However, the goal is to consolidate these offerings under the HEPI brand, providing customers with a clear understanding of the broad range of solutions available. This consolidation is already underway, with the company’s structure moving to four main divisions: HEPI – Mining Solutions; HEPI – Cooling Solutions; HEPI – Dom-Ex; and HEPI – Crushing Solutions. This reorganization will simplify the customer experience and enhance HEPI’s global presence.
The company’s recent acquisition of Brake Supply Inc, a North American leader in aftermarket components for heavy equipment, is a testament to its expansion strategy. This acquisition will allow HEPI to bring its expertise to South America and other markets, further strengthening its global footprint. Additionally, HEPI’s contracts with major mining companies, such as Minera Las Bambas in Peru and Codelco in Chile, demonstrate its capability to handle large-scale, high-stakes projects. These contracts involve overhauling entire fleets of mining trucks, showcasing HEPI’s technical prowess and reliability.
HEPI’s affiliation with Hitachi Construction Machinery (HCM) adds another layer of strength. As part of HCM, HEPI benefits from the recognition, security, and financial stability that come with being part of a global powerhouse. Moreover, the synergies with other HCM-owned companies, such as wear parts major Bradken and fleet management system provider Wenco, create a comprehensive offering that can meet the diverse needs of the mining industry. Bowlware highlighted this synergy: “Increasingly, we are looking more at what we can do together. Hitachi Construction Machinery wants to be a global mining solutions provider across numerous areas. For us, being part of HCM certainly brings an extra recognition of value on the part of customers plus a feeling of security and financial stability.”
As HEPI continues to expand and consolidate its offerings, the mining industry can expect to see significant shifts. The company’s focus on