Sandvik has unveiled a new business division, Sandvik Mining and Rock Technology.
The division was formed through the merging of the Sandvik Mining and Sandvik Construction divisions.
According to Sandvik, the new division “will be organised in a de-centralised business model with separate product areas based on the product offering”.
“Each product area will have full responsibility and accountability for its respective businesses.”
Bjorn Rosengren, Sandvik’s CEO, explained the reasoning behind the merger.
"Products developed for the customer segments mining and construction are based on common technologies with a similar aftermarket offering,” Rosengren said.
“In addition, manufacturing units are already largely shared with to some extent shared front line resources. By joining the operations into one business area we achieve a leaner and more efficient structure. The decentralised business model enables an even clearer focus and faster response to our customers.”
The new structure will begin operation in July.
Current head of Sandvik Mining, Lars Engstrom, has been appointed president of the new division, while current president of Sandvik Construction, Dinggui Gao, will leave the company on 1 July.