Sandvik Shifts Mining Equipment Facilities to India, China
Sweden-based Sandvik has announced new efforts to shift its mining equipment facilities to India and China from the US and Europe as part of the company’s two-year reorganization initiative.
"A number of factories in Europe and the US are to be closed down,” Sandvik Mining president of emerging markets Kobus Malan stated in an interview. “They were acquired during the ten-year long mining super cycle when chasing orders were a priority."
The manufacturer company is concentrating on cost efficiencies and emerging markets like India and China as it expects both countries to be growth churners in the underground coal mining gear business next year, especially India.
“We are expecting the coal sector to contribute half of our mining business in India in next five years,” said Subhasis Das, vice president Sandvik Mining.
Sandvik has made a name for itself in the hard-rock mining sectors of India but has yet to find its niche in the country's coal sector.
“We will prune the portfolio by divesting areas where we see lesser potential for Sandvik, while at the same time making acquisitions and build in areas where we see more potential,” Chief Executive Officer Olof Faxander said.
Sandvik is a global supplier of mining equipment and tools, service and technical solutions. The company specializes in peripheral equipment for the underground mining sector.
