Last year, as Rick Lemieux neared retirement and succession planning became a priority, he opted to put his Alban business, RDH Mining Equipment, on the market. But he didn't have to look far to find a buyer.
Four of his long-time employees liked the business so much they bought it, and are now heading the mining equipment manufacturing company under a unique joint partnership that allows each of them to contribute their expertise.
“We're four partners here, so we have equal say in what happens in the company,” said chief financial officer Neil Edward. “We discuss every decision and make sure that we pick the right direction for the future of this company, for growth and for employees.”
Edward, who holds a degree in commerce and has been with the company for more than five years, is joined by operations manager Gus Portalier, a transplant from Chile whose experience in equipment design, manufacture and service has served him well over the last six years at RDH.
Kevin Fitzsimmons, who has a background in trucking and ran parts departments in Mac and Volvo dealerships in southern Ontario, will serve as president under the new ownership; he also happens to be Lemieux's son-in-law. Jeannot Courchesne holds a degree in business administration and is the quartet's longest-serving employee. Starting in the warehouse, he has worked in every department and will serve as vice-president for the venture.
Located an hour's drive south of Sudbury, RDH Mining Equipment has been supplying custom-designed and remanufactured equipment to the mining and tunnelling industries since 1984, specializing in narrow vein equipment.
RDH manufactures a full fleet of equipment, from jumbos and bolters to scissor lifts and utility vehicles. An early innovation by its founder was the standardization of all its products' components—the same pump can fit on all machines in its fleet, for example—so clients could reduce the size and cost associated with its parts department.
“Rick worked in the mine for a long time,” Fitzsimmons said. “He noticed that when you buy a new piece of equipment, you have to be constantly buying new parts.”
Comprised of a shop, storage facility and a newly constructed sandblasting plant, the RDH complex has its own house on site to accommodate clients travelling from far-flung areas, as well as its own ramp to test equipment before it's shipped to clients.
Employees—there are 70 now, the most in the company's history—are recruited from nearby Alban, Sturgeon Falls and French River. RDH is the area's largest employer, and is actively recruiting heavy duty equipment mechanics, high-voltage electricians and draftsmen/mechanical engineers to add to its payroll.
Company sales are global, and dealers have been established in Chile, Russia and Africa.
“We plan on expanding that, because it's difficult to service everyone from Alban, and too costly,” Fitzsimmons said. “We've set up three companies as of right now, and we've targeted Ontario and Quebec with our own sales and service team. Out of this office, we plan on servicing Canada, the U.S. and Mexico.”
The company is actively searching out dealers in other countries, and Fitzsimmons said the company will work closely with them to ensure the RDH standard of quality and customer service is maintained.
Response to the new partnership has been positive, but the foursome doesn't have any dramatic plans for change. Operations manager Portalier said the new owners want to concentrate on bringing in new customers and enhancing the services offered to existing customers.
“For now, we're not going to have major changes,” Portalier said. “It's just we have a vision for where we want to bring RDH.”
They will retain a focus on innovation, and are aiming to standardize their equipment building process to reduce costs and build more equipment, he added. RDH is also looking to recruit road mechanics who can travel to clients to service equipment, a new offering for the company.
Expansion isn't out of the question, and with mining heating up, the company is already working at capacity, trying to keep up with demand. High gold prices especially have influenced the increase in orders coming in.
“It's almost like demand is overpowering supply right now,” Edward said. “We can only get parts in so quickly.”
Courchesne, who, with 15 years at the company, is the veteran of the group, said he was confident coming into the collaboration because of his experience and familiarity with his three partners.
It's a good time for RDH, and he's optimistic the company can benefit from the boom.
“You try to ride the wave as much as you can while the wave is there and put as much equipment out as possible.”
