Sandvik has signed an agreement to form a joint venture with Lingong Group Jinan Heavy Machinery Co., Ltd (LGMG) in Jinan, Shandong Province, China, in which Sandvik has the majority share, for the production and sales of opencast 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 2H16 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”, commented Lars Engström, President, Sandvik Mining.
Edited from press release by Harleigh Hobbs
