Marius Kloppers to Head Giant BHP BillitonMarius Kloppers to Head Giant BHP Billiton
By Charlotte Mathews
01 Jun 2007 at 09:17 AM GMT-04:00
JOHANNESBURG (Business Day) -- South African chemical engineer Marius Kloppers will become CEO of the world’s biggest resources group, BHP Billiton [NYSE:BHP], the group said yesterday in an announcement that came as little surprise to the market.
He was tipped in February as the frontrunner among internal candidates for the job when the group announced that incumbent CEO Chip Goodyear would depart at the end of this year.
Kloppers will be the second South African to fill this position. Goodyear’s predecessor, Brian Gilbertson, resigned in January 2003 after only six months in the role, with the company officially citing “irreconcilable differences” with the board.
Kloppers holds a degree in chemical engineering from the University of Pretoria, a PhD from the Massachusetts Institute of Technology (MIT) and an MBA from Insead in France.
He started his career in petrochemicals at Sasol [NYSE:SSL] and materials research at Mintek. After obtaining his MBA he worked as a management consultant with McKinsey & Co in The Netherlands.
He was appointed to Billiton by Gilbertson in 1993 after writing to ask for a job, and joined the group’s aluminium business, where he served as GM and chief operating officer. Before the merger of BHP and Billiton, he was CE of Samancor Manganese and group executive of Billiton’s coal and manganese businesses.
Gilbertson said in an interview with Bloomberg that Kloppers was an inspired appointment.
“He is a man of formidable intellect, he is a very good decision maker, he can be tough and ruthless when he needs to be, and he can be absolutely charming, which is what he is most of the time.”
After the merger of the two companies, Kloppers served as chief marketing officer and chief commercial officer before being appointed group president of nonferrous materials.
“We are in a time of considerable change in our industry with the emergence of new markets and sources of supply,” said BHP Billiton chairman Don Argus.
“Marius’ vast experience in the resources sector and his demonstrated strategic capabilities provide the skills we need.”
Kloppers managed BHP Billiton’s takeover of copper, nickel and uranium company WMC Resources in 2005, which was among the first of a series of industry takeovers. At the time the group was criticised for overpaying for the acquisition but criticism has ebbed after the surge in prices of all three commodities.
“Kloppers has been focused on building the revenue end of the company and he is very good at it,” said Sydney-based Constellation Capital Management fund manager Peter Chilton.
“They were ahead of the market with WMC’s purchase and it remains to be seen what’s next.”
BHP Billiton’s annualised revenue is almost $45bn. In the six months to December it raised its dividend by 14%, the 10th consecutive dividend increase, which has been accompanied by $17bn of share buybacks since August 2004.
Kloppers, who is 45, has a wife, Carin, and three children.
He will take on the role of CEO on October 1 and will be based at the group’s headquarters in Melbourne, Australia. The Bloomberg News also contributed to this report.