SANDVIKEN, Sweden, Nov. 26, 2002 (PRIMEZONE) -- Sandvik (Other OTC:SDVKY) (Stockholm:SAND):
Sandvik Mining and Construction has decided to consolidate production of mining equipment in North America to its plants in Alachua, Florida in the U.S. and Burlington, Ontario, Canada. The plant in Bluefield, West Virginia, which mainly manufactures equipment for the continuous mining of coal, will be closed.
Sales, service and administration are being transferred to Sandvik's facilities in Bristol, Virginia. The service and repair workshops in Bolt, West Virginia, and Brier Hill, Pennsylvania, as well as strategically located warehouses will remain open.
The restructuring will be carried out at the beginning of 2003 and affects about 150 persons.
The market for coal mining and the price of coal has fallen dramatically since 2001 and is expected to remain at a low level. Consequently, rationalization measures are necessary to also attain profitability at a lower level of sales.
Sandvik Mining and Construction
For additional information contact:
Anders Ilstam, President, Sandvik Mining and Construction +46 26 26 51 01
Sandvik is a high-technology engineering group with advanced products and world-leading positions in selected areas -- tools for metalworking, machinery and tools for rock excavation, stainless steel, special alloys and resistance heating materials and process systems. The Group has 37,000 employees in 130 countries, with annual sales of approximately SEK 55,000 M.
Sandvik Mining and Construction is a business area within the Sandvik Group and a world-leading manufacturer of drilling and excavation machinery, tools and service for the mining and construction industries. Annual sales amount to about SEK 14,800 M, with 8,000 employees.
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