Sandvik to combine mining, construction segments

Photo courtesy of Sandvik Construction

Sandvik plans to merge its Sandvik Mining and Sandvik Construction business segments into a new business called Sandvik Mining and Rock Technology on July 1.

The company says the operations will be organized in a decentralized business model with separate product areas. Each product area will have full responsibility and accountability for its respective business.

“The manufacturing units are already largely shared to some extent,” says Björn Rosengren, Sandvik’s president and CEO. “By joining the operations into one business area, we achieve a leaner and more efficient structure. The decentralized business model enables an even clearer focus and faster response to our customers.”

Sandvik appointed Lars Engström, president of Sandvik Mining, to serve as president of Sandvik Mining and Rock Technology. The company adds that Dinggui Gao, president of Sandvik Construction, will leave the company July 1 after the merger. The company plans to share more details on the new business structure on May 24 during Sandvik Capital Markets Day.