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How to Reduce Hydraulic Costs: GMS Strategy for Mining Companies

Exkavator.ru
Amid increasing financial pressure, extending equipment service life and optimizing maintenance costs have become especially important. At the “Real MINING 2025” conference, Sergey Anikyev, Commercial Director of Gidravlika MechService (GMS), spoke about the practice of refurbishing hydraulic components as an alternative to purchasing new units.

A Full Range of Hydraulic Repair Services for All Mining Equipment

The company works with various types of mining equipment, including mining dump trucks, bulldozers, excavators, and underground machinery. Its service portfolio covers the refurbishment of hydraulic cylinders, hydraulic pumps, hydraulic motors, and hydraulic valves, including components that are often considered non-repairable.

In-house production of hydraulic cylinders is another key area of the company’s operations. Thanks to an extensive drawing library, GMS manufactures hydraulic cylinders for the most popular equipment models in Russia, including Caterpillar, Komatsu, Liebherr, and others.

The group’s structure includes a manufacturing plant in Kazakhstan and five production sites across four regions of Russia, from Moscow to Khabarovsk. The total production area exceeds 15,000 square meters.

Annual revenue from services and products (repair and manufacturing) amounts to approximately RUB 1.75 billion.

Don’t Wait for Failure: How to Extend the Service Life of Hydraulic Units

As the speaker noted, some companies closely monitor engine performance and its operating life until major overhaul, while at the same time ignoring hydraulic units until they fail completely. However, the breakdown of such components can lead to no less significant financial losses.

To extend the service life of hydraulic units, the following conditions are essential:

  • High-quality working fluids: Low-quality fluids or those past their service life accelerate pump wear. Oil replacement should strictly follow manufacturer recommendations.
  • Regular maintenance: Timely replacement of filters, monitoring oil level and condition, and cleaning the system from contamination.
  • Proper operation: Avoiding overloads, sudden load changes, and operation under extreme conditions.
  • Favorable operating environment: Extreme temperatures, high dust levels, and humidity can accelerate pump wear.

In the case of major overhaul of hydraulic units, it is important to ensure correct reinstallation after refurbishment, including thorough cleaning of the hydraulic system from debris caused by the previous failure.

Major Overhaul and Exchange Pool of Units: A Formula for Minimizing Costs

According to the company, major overhauls of hydraulic units reduce costs by more than 50% compared to purchasing new components. When operating and maintenance conditions are met, the service life of refurbished units reaches 15,000–18,000 engine hours.

The use of an exchange pool of units significantly reduces equipment downtime during repairs.

For example, a major overhaul of a hydraulic pump for a Komatsu PC2000 excavator costs RUB 3.2 million, while a new unit costs RUB 5.5 million, resulting in savings of RUB 2.3 million. Refurbishing a hydraulic valve for the same model costs RUB 2 million compared to RUB 4.5 million for a new unit, saving RUB 2.5 million.

What If Dozens of Machines Require Repair?

Sergey Anikyev cited the case of one major customer. Over the past two years, the company ordered the repair of 105 hydraulic units from GMS. If new units had been purchased, total expenses would have reached approximately RUB 280.5 million. The actual cost of repairs amounted to RUB 129.4 million, delivering savings of RUB 151 million, or 54%.