Commodities face contagion as global market meltdown deepens
For commodities linked to industrial cycles, such as copper, a hard-landing scenario would put fresh pressure on bulls.
Mining equipment maker Atlas Copco (STO:ATCO-B) said today 163 employees in Örebro, Sweden will be let go “. . . due to to continued weak global demand for mining equipment.”
The company said that it informed the workers today. The laid off staff are made up of 110 blue-collar workers and 53 white-collar workers.
The Örebro plant, which employs 1,700 people, manufactures equipment used in mines and quarries as well as for construction.
Atlas Copco’s stock is up 3.86% for the year to date and is trading at to SEK164.60 (US$24.89). The 52-week range is SEK128.30 to SEK170.10.
Exploration has been hammered due to the commodity slump. In June, Intierra reported a 29% drop in drilling activity.
Atlas Copco, which is based in Stockholm, Sweden, makes compressors, expanders and air treatment systems, construction and mining equipment, power tools and assembly systems.
Image by Secretaria de Comunicaciones
