Issue Issue 2 2008
Sandvik is handling the market
With worldwide business activities that are conducted through representation in 130 countries by 47,000 employees and with annual sales of approximately SEK 86 billion, the Sandvik Group is a high-technology, engineering group.
Advanced products have given the group a world-leading position within selected areas, including tools for metal cutting, special alloys, metallic and ceramic resistance materials as well as process systems. Its business concept is based on a unique competence in materials technology, which has resulted in a world-leading position in three core areas:
- Cemented-carbide and high-speed steel tools for metalworking application and blanks and components made of cemented carbide and other hard materials;
- Machinery, equipment and tools for rock-excavation;
- Stainless and high-alloy steels, special metals, resistance materials and process systems.
Sandvik develops, manufactures and markets highly processed products, which contribute to the improvement and profitability of its customers. Operations are primarily concentrated on areas where Sandvik is, or has the potential to become, a world-leader.
Sandvik Mining and Construction, a world-leading supplier to the mining and construction industries, is a business area within the Sandvik Group and a leading global supplier of machinery, cementedcarbide tools, service and technical solutions for the excavation of rock and minerals in the mining and construction industries. Operating in five customer segments, including underground hard rock mining; underground soft rock mining; surface mining and materials handling; construction and exploration, Sandvik Mining and Construction’s annual sales in 2006 amounted to about SEK 25,000 million with approximately 12,200 employees.
On 22 January 2008, Sandvik entered an agreement for the acquisition of the South African company, Corstor International (Pty) Ltd. A leading company within the manufacture and sale of borehole core storage and handling systems for the mining and exploration industries, Corstor also distributes analysis and survey equipment as well as accessories to the mining and exploration industries in Africa.
With sales amounting ro approximatelt SEK 70 million per year, Corstor has its head office and the larges production plant located outside Johannesburg, South Africa, with sales and service offices in Ghana and Tanzania.
The president of Sandvik Mining and Construction business ares, Lars Josefsson, commented: “Corstor is innovative within the design and development of systems for the storage and handling of borehole cores. The customer offering comprimises of advanced systems for the storage of borehole cores and includes equipment to analyse cores in an environmentally consious and safe manner. The products are an excellent complement to the business area’s range aimed at the rapidly expanding exploration industry. The increase in exploration activities in Africa entails favourable growth opportunities for Sandvik combined with the potential to expand in other markets through Sandvik’s global network.
A previous major addition to Sandvik Mining and Construction’s portfolio was achieved on 11 May 2006 when Sandvik reached an understanding with Asahi Diamond Industrial Co Ltd, Japan, to acquire Hagby-Asahi AB, including its subsidiaries in Finland, the US and Canada. Hagby-Asahi, one of the market’s leading manufacturers and suppliersof diamond tools and equipment for the mining, construction and metal working industries as well as a supplier of diamond drill rigs for mineral exploration, reported sales in 2005 of about SEK 160 million. In addition to its manufacturing unitlocated in Nora, Sweden, it also has sales offices in Finland, Canada and the States. Hagby-Asahi AB makes up part of Sandvik Mining and COnstruction, while also supplying the Sandvik Tooling business area with products and services in terms of diamond tools.
Lars said: “The acquisition was in line with the Sandvik Group’s long-term strategy of continued profitable growth. Hagby-Asahi is a company with a strong market position, particularly in the Nordic region, and through the acquisition we intend to continue expansion globally. Not only does Hagby-Asahi’s strength within diamond drill technology and mineral exploration complement Sandvik’s current operations, it is also able to gain access to Sandvik’s global resources.”
While acwuisitions have further strengthened Sandvik Mining and Construction’s position in the market, the divsision has also achieved significant market success through major orders. One such important order was received in December 2007 for a materials-handling system from Alstom, a global company for infrastructure in energy and transport. With an order value of about SEK 400 million, the project comprises a turnkey lignite and limestone handling system at Maritza East 1 power station, southeast of Sofia in Bulgaria.
The advanced system has a capacityexceeding 32,000 tonnes per day and Sandvik’s delivery will include a train unloading station, stacker/reclaimers, belt conveyors, crushers and a limestone handling system. The coal-fired power plant is scheduled to begin its operations in 2009.
The Maritza East 1 project is strategically important for Sandvik Mining and COnstruction in establishing close co-operation pending Alstom’s continued expansion plans in the power sector. “In 2006, we received orders exceeding SEK 1000 million for handling systems for coal-fired power stations. With its comprehensive knowledge in mining, handling and preparation of coal, Sandvik Mining and Construction is well placed to capture future opportunities.” Lars concludes.
Sandvik Mining and Construction
Products: Mining exploration and underground mining
Sites: In 130 countries