Sandvik to move manufacturing offshore

Sandvik has announced it will move the majority of its Australian manufacturing operations offshore over the next 12 months.

According to the mining equipment maker, this will allow it to bring focus back to the servicing and support of equipment for customers in Australia.

This latest decision will affect manufacturing at its Canning Vale factory in Perth, and its recently opened Heatherbrae site north of Newcastle.

Sandvik opened the Heatherbrae site in 2012, however it was soon forced to cut positions at the site as part of its wider Australian review, which saw 73 redundancies nationally, following a sharp drop in the price of coal.

It also closed its Mayfield hard materials facility last year as well.

Due to this new offshoring Sandvik will around 170 positions nationally at its manufacturing and related operations over the coming year.

However it will continue to provide sales, maintenance, and aftermarket services from its facilities, and recently opened a new facility in Orange focused on aftermarket support for mining.

Sandvik's Bayswater facility, which manufacturers conveyor pulleys, rollers, and frames for mining and construction centres will remain in operation.

Speaking on the offshoring decision, Sandvik country manager Rowan Melrose said that it was a regrettable one, but was inevitable in the current global economy.

“We fully understand the impact that this decision will have on individuals, their families and the local community,” he said. Sandvik employees affected by this announcement will be supported through the company’s employee assistance program," Melrose said.

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