Sandvik & Shandong Energy Machinery Co. Form Joint Venture
Swedish engineering group Sandvik’s mining and construction division will team up with China’s Shandong Energy Machinery Co. in a 50/50 joint venture to produce coal mining equipment. The joint venture is expected to be established within the next six months and operational by late 2011.
Shandong Energy Machinery Co. is a subsidiary of the Xinwen Mining Group. The company’s primary activities have been in developing underground coal mining machinery.
Sandvik will provide technological and product know-how in the venture, while Shandong Energy Machinery will focus on local sourcing skills and customer application knowledge.
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“This joint venture agreement is in line with Sandvik’s long-term strategy of continued profitable growth and our aim to become a leading equipment supplier to the Chinese coal mining market. It gives us a great opportunity to further develop our well proven underground coal mining equipment in close cooperation with our Chinese customers, as well as expanding our local set up to provide the best service and support to our customers”, says Sandvik Mining and Construction President Lars Josefsson.
The primary products being produced are premium Sandvik roadheaders to be sold under the Sandvik brand. The ultimate goal of the joint venture is to become the leading supplier of roadheaders to the growing Chinese coal mining market.
