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Sandvik to build new plants in China
By Chen Jialu (China Daily)
Updated: 2008-04-28 10:17 The Swedish-based Sandvik group, one of the world's largest engineering equipment producers, plans to expand its manufacturing production bases on the Chinese mainland this year to tap the nation's mining and construction boom. Sandvik China is set to build three new factories in Wuxi, Jiangsu province, to enhance its production capacity, Svante Lindholm, president of Sandvik China Holding Co, tells China Business Weekly. The three factories, operated by the company's three business sectors: Sandvik Mining & Construction, Walter, and Sandvik Hard Materials, will respectively produce cemented carbide tools for mining equipment; design and produce cutting tools and special tools; and produce cemented carbide wear parts. The factories will start construction in October, the company says. In addition, the company also plans to expand its production lines for mining equipment crushers in Jiading of Shanghai this year. "The new production lines will mainly serve the Chinese market, and the secondary purpose is to serve Asian market and exports," said Svante. Sandvik notched up 3.8 billion yuan ($542.74 million) sales revenue in China last year, a 20 percent year-on-year growth. While sales from mining equipment business grew the fastest among all its three business sectors. The Swedish firm specializes in three major business sectors: tools, which cover tools and tooling systems for metal cutting and components; mining and construction which provides equipment, tools and services for mining and construction; and material technology, which focus on stainless steel and special alloy products for niche applications, resistance materials and steel belt process systems. As a drilling equipment provider, Sandvik sees opportunities in China's new round of mining exploration as a strong stimulus to drive their profit growth. The recent price hikes of some core mining crude products including iron ore and coal are luring many investors rush to explore new mines. The Sweden-listed company reported SEK 86 billion ($14.37 billion) global income last year, on which net profit hitting SEK 14.39 billion. China ranks as Sandvik's No 8 regional market in terms of revenue and employers, according to Sandvik's 2007 fiscal report. (For more biz stories, please visit Industries)
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