Atlas Copco has divided its operations to create a new company with a focus on the mining and civil industries; Epiroc. Atlas Copco, one of the world’s leading providers of productivity solutions, has carefully picked the name Epiroc as a representation of the company’s philosophy. With Epi meaning “on” or “at” in Latin and Greek and Roc signalling stability and durability.
Epiroc benefits from more than 140 years’ experience of Atlas Copco. The new company will retain the same products, manufacturing and marketing organisation as well as the people from Atlas Copco’s mining and rock excavation division. It will however, have a completely new board and growth targets.
The decision to split the company into two organisations was made in 2017 and the new company Epiroc is to be dividended out in mid 2018.
The main benefit of this development is to create an arm of the organisation that can focus solely on the mining and civil industries sector. As Terry Browne, General Manager, Epiroc Australia explains: “By splitting the company it will concentrate our energy, the biggest reason for the change is to become more focussed on the mining industry and to ensure that we can improve our service offerings and be a value-adding partner to our customers.”
With the formation of Epiroc the mining and civil industries now have major representation at board level. As Atlas Copco represents and works in a number of industries, the board naturally has had many different priorities split across sectors. As Terry Browne states: “We were not prominent in the broader agenda.”
“With the development of Epiroc we now have a direct path to a board of directors who all have mining on their mind, they can make things happen,” continued Browne.
For many Scandinavian businesses, splitting a company in order to create a much more concentrated focus is common practice. “This has been done many times before,” says Browne, “it allows companies to break off into different focus areas and meet customer needs in those particular sectors.”
Atlas Copco’s existing mining customers experience will not change dramatically, Browne explains: “From our point of view a lot of it is business as usual, but the main change is that this direction will give the mining and civil industries more of a voice higher up the business.”
In terms of a timeline, the decision to split the company came in 2017 and there is an AGM in April where the final details will be worked through. The company has already started trading under the Epiroc name, but will list as a separate company early July.
From humble beginnings in Stockholm, Sweden in 1873, to becoming an internationally renowned provider of productivity solutions, serving major players in the construction and mining industries, Epiroc will operate in more than 180 countries, with over 1,200 employees worldwide and more than 16 customer service centres across Australia.
For more information about Epiroc, visit: www.epiroc.com