Sandvik and Chinese mining equipment supplier form joint venture

Sandvik and Chinese mining equipment supplier form joint venture

 

Sandvik Mining and Construction and Shandong Energy Machinery Co. in
Xintai, Shandong Province, China, have signed an agreement to form a
50/50 owned joint venture for the production and sales of coal mining
equipment.

The joint venture is expected to be established within 6 months,
following customary regulatory approvals. It is planned to be
operational by the end of 2011 and will be fully consolidated in the
Sandvik reporting.

One of the business focuses of Shandong Energy Machinery is to design
and manufacture equipment for the Chinese underground coal mining
market. It is a subsidiary of Xinwen Mining group, one of China's top
fifteen coal mining companies. Shandong Energy Macinery has
approximately 4400 employees.

The joint venture will focus on sourcing, assembly, sales and service of
roadheaders for the large Chinese coal mining market. Sandvik will
contribute with the product know-how and technology while Shandong
Energy Machinery will contribute with local sourcing skills and customer
application knowledge. The products are premium Sandvik roadheaders and
will be sold under the Sandvik brand. While the initial focus will be to
supply roadheaders to Shandong Energy Machinery's mother company, Xinwen
Mining group, the goal of the JV is to become the leading premium
roadheader supplier to the Chinese coal mining market.

 “This joint venture agreement is in line with Sandvik's long-term
strategy of continued profitable growth and our aim to become a leading
equipment supplier to the Chinese coal mining market. It gives us a
great opportunity to further develop our well proven underground coal
mining equipment in close cooperation with our Chinese customers, as
well as expanding our local set up to provide the best service and
support to our customers”, says Lars Josefsson.

Sandviken, 29 April 2011

Sandvik Aktiebolag (publ)

Sandvik AB discloses the information provided herein pursuant to the
Securities Markets Act and/or the Financial Instruments Trading Act. The
information was submitted for publication at 09:00 CET on 29 April 2011.

For further information, contact Lars Josefsson, President of Sandvik
Mining and Construction,
tel +46 26 26 51 51 or Jan Lissåker, Vice President Investor Relations,
Sandvik AB, tel +46 26 26 10 23.