Sandvik plans to sell a part of its Mining Systems product area to FLSmidth.
Mining Systems is a supplier of design and engineering of material handling systems. In 2016 the operations had annual sales of 2.9 billion SEK ($448 million).
Sandvik’s plan to offload Mining Systems involves:
- The project part of the business related to mining industry is being divested to FLSmidth.
- Ongoing orders and deliveries related to the non-mining material handling project business and some mining projects will be delivered by Sandvik through an operational agreement with FLSmidth. The projects are expected to be finalised during 2017–2019.
- The divestment process of the conveyor components part of Mining Systems is ongoing and proceeds according to plan.
According to FLSmidth, the pending acquisition enables it “to improve productivity for customers by closing a gap and cover a wider range of the full mining value chain – from the primary crushing point in the mining pit and the transport from mine to plant all the way through the minerals processing plant to the tailings handling.”
“By obtaining direct access to all key processes and equipment, the acquisition will allow FLSmidth to digitalise the full value chain and enables a better utilisation of existing leading technologies.”
The transaction is subject to regulatory approvals and is expected to be completed by the end of 2017.