Sandvik and Lingong Group Jinan Heavy Machinery Co., Ltd in Jinan, Shandong Province, China, have signed an agreement to form a joint venture, in which Sandvik has the majority share, for the production and sales of surface and underground mining equipment, targeting mid-market customers.
The joint venture will be established following customary regulatory approvals. It is planned to be operational in the second half of 2016 and will be a part of the new business area Sandvik Mining and Rock Technology.
The joint venture will focus on sourcing, assembly, sales and service of surface drills, underground loaders and underground trucks. The products will be designed for the specific needs of mid-market customers and will be sold under an independent brand. While the initial focus will be to supply the products for the Chinese market, the goal of the joint venture will also be to become the leading midmarket mining equipment supplier for other selected parts of the world.
“This joint venture agreement is in line with Sandvik’s strategy to develop a strong foothold in the fast expanding mid-market for mining equipment. I am very excited to make this important move to expand Sandvik’s mid-market offering with an experienced industrial partner like Lingong”, says Lars Engström, President, Sandvik Mining.
Stockholm 31 May 2016
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Sandvik Group
Sandvik is a high-tech and global engineering group offering advanced products and services that enhance customer productivity, profitability and safety. We hold world-leading positions in selected areas – tools for metal cutting, equipment and tools for the mining and construction industries, stainless materials, special alloys, metallic and ceramic resistance materials as well as process systems. In 2015, the Group had about 46,000 employees and sales of about 91 billion SEK in more than 150 countries.
Sandvik Mining
Sandvik Mining is a business area within the Sandvik Group and a leading global supplier of equipment and tools, service and technical solutions for the mining industry. The offering covers rock drilling, rock cutting, rock crushing, loading and hauling and materials handling. In 2015 sales were about 24,000 million SEK, with approximately 12,000 employees.