Atlas Copco has consolidated its mining consumables business in the US and its mining equipment operations in China.
In the US, it will move two of its mining consumables production facilities in the country into a single facility, which will be expanded.
It is closing its facilities in Grand Prairie, Texas, and Salt Lake City, Utah, which belong to the Rock Drilling Tools division in the Mining and Rock Excavation Technique business area.
About 140 people in total will be affected. The production will move to Fort Loudon, Pennsylvania, where investments will be made in people and the facility.
“We have world-class products, and this move will make us more efficient and further improve productivity for customers,” Johan Halling, president of the Mining and Rock Excavation Technique business area, said.
“The mining market is going through a difficult period. Sadly, the measures taken will also affect some of our employees.”
In China, Atlas Copco will also close its facility in Shanyang, which manufactures hand-held rock drills for mining, and relocate operations to Zhangjiakou.
Around 225 people will be affected by the move.
In Zhangjiakou, Atlas Copco currently produces down-the-hole equipment used to drill blast holes, water wells and geothermal energy applications.
About 45 new employees will be added to this site, and investments made in a facility expansion as well as new machinery.
“We have a great product portfolio in China, but with the weak demand in the mining market we must ensure that we utilise our capacity the most efficient way,” Halling said.
“Consolidating the operations will help us stay strong for the future. We will support the affected employees in this difficult situation.”