Sask. mining suppliers pleased with PotashCorp-Agrium merger

Saskatchewan companies that sell goods to the mining industry see opportunity in the merger between PotashCorp and Agrium.

Earlier this week, the two companies announced they would be merging to create a massive agricultural services andmining company that would be worth $36 billion US.

"We live in a different world today than we did ten years ago," said Jim Nowakowski, president of the Saskatchewan Industrial and Mining Suppliers Association (SIMSA). "It's really, how do you show up on the global scene? How do you fit? Where do you compete? How do you protect your market against the invasion of other global players?"

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While Nowakowski said both Agrium and PotashCorp are strong, stable companies, he thinks the merger will result in a company that's more likely to expand operations inside the province.

"It's critical for these companies to look forward and see what each other's strengths are, and see how they could augment each other and make themselves more competitive," he said. "And hopefully, through that process, run more profitable, more viable operations."

Ultimately, the health of Agrium and PotashCorp is a serious concern for SIMSA members. Both mines represent a significant market for companies here, buying everything from steel to industrial clothing.

"If we were to lose either one of them, or the volume that they do in business, to some SIMSA members, it might mean up to 50 per cent of their revenue."