Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
In 2006, Sandvik acquired Hagby-Asahi AB in Nora, Sweden. This was one in a series of strategic acquisitions that established Sandvik as a leading supplier to the exploration industry.
In addition to Hagby-Asahi’s leading position as a manufacturer and supplier of tools and equipment for mineral exploration, the company also included a construction division that develops and sells equipment for drilling and grinding of concrete using diamond tools. This operation has sales of approximately SEK 65 M and has about 30 employees in Sweden and Finland.
The construction division has a focus and market in an area in which Sandvik otherwise does not have a business presence and can therefore not be considered core operation for Sandvik. Accordingly, Sandvik has decided to divest this operation.
Sandvik has reached an agreement with Husqvarna Construction Products Sweden AB, which will be the new owner of the construction division.
The construction division will be transferred to the new owner on 30 April 2008.
Sandviken, 30 April 2008
Sandvik AB; (publ)
For further information, contact Lars Josefsson, President of Sandvik Mining and Construction business area, tel: +46 26 26 51 51 or Jan Lissåker, Vice President, Investor Relations, Sandvik AB, tel: +46 26 26 10 23.
