STOCKHOLM, Sweden, Oct. 10, 2002 (PRIMEZONE) -- Atlas Copco (Other OTC:ATLKY) has decided to integrate its drill rig and loader/truck businesses into one dedicated division. By transferring the production of loaders and mining trucks from Atlas Copco Wagner, Portland, USA, to the Rock Excavation Technology Center in Orebro, Sweden, substantial synergies will be achieved in product development, manufacturing, purchasing, logistics, and administration.
The transfer, which affects 215 employees in the Portland plant, will be done during 2003 and involves a restructuring cost of MSEK 150. The main part, approximately MSEK 100, will be charged to the fourth quarter 2002.
This move will give opportunities to strengthen the competitive position significantly, as well as the ability to offer integrated products and service solutions to the global underground mining industry.
"We will make substantial investments within the areas of design and engineering. By concentrating all resources to our dynamic product development center in Orebro, we can easier respond to future customer demands related to the entire rock excavation cycle," said Bjorn Rosengren, Senior Executive Vice President Business Area Construction and Mining Technique.
The division Atlas Copco Rock Drilling Equipment's manufacturing unit in Orebro, Sweden, currently employs 685 people. As a result of the integration with Atlas Copco Wagner, up to 150 new job opportunities will be created.