Sandvik has announced its intention to divest its Mining Systems division.
This product area, which sits within Sandvik Mining, covers the supply, design, and engineering of materials handling systems for the resources industry.
"Divestment of Mining Systems will make Sandvik Mining more focused on its core operations, mining equipment and aftermarket offerings for both underground and surface mines, which Sandvik will continue to develop to ensure long term value creation,” Mats Backman, CFO and acting President and CEO for Sandvik, said.
The division employs around 1300 people, and had annual sales of $1.12 billion, accounting for 7 per cent of Sandvik’s invoicing.
According to a Sandvik spokesperson the only Australian operations to affected will be the Bayswater facility, in Perth, which produces conveyor pulleys, rollers, and frames for mining.
From the third quarter of this year the Mining Systems group will be reported as ‘discontinued operations’.
It is understood a buyer is yet to be found.