Mining equipment manufacturing group Atlas Copco has announced plans to move two production facilities in Sweden to its competence centre in Orebro.
The two companies Atlas Copco Craelius AB in Märsta and Atlas Copco GIA AB in Grängesberg, which currently employ 185 people in total, will be closed down and relocated to Örebro.
Atlas Copco president for the mining and rock excavation technique business area Johan Halling said that the majority of employees will be offered other positions within the group.
“We have a great product portfolio and tremendous skills that we are now planning to add to our competence center in Örebro in order to increase efficiency and capitalize on the synergies,” he said.
“This change helps us adapt to the current mining market situation with lower demands, and will ensure that we stay strong and agile for the future.”
Both operations serve the global market, with Atlas Copco Craelius AB in Märsta manufactures mining equipment such as exploration drilling rigs, while Atlas Copco GIA AB in Grängesberg produces mining equipment including underground loaders, utility vehicles and ventilation systems.
The restructuring costs have been booked in the first quarter of 2014 at 75 million Swedish Kroner, equivalent to nearly $15 million at current exchange rates.
Atlas Copco, based in Stockholm, was founded in 1873 and employs more than 40,000 people, producing equipment for global industry across 180 countries, with products such as compressors, vacuum solutions and air treatment system, construction and mining equipment, power tools and assembly systems.