Sandvik and Lingong Group Jinan Heavy Machinery Co. Ltd in Jinan, Shandong Province, China, have signed an agreement to form a joint venture, in which Sandvik has the majority share, for the production and sales of surface and underground mining equipment, targeting midmarket customers.
The joint venture will be operational in the second half of 2016 and will be a part of the new business area Sandvik Mining and Rock Technology. It will focus on sourcing, assembly, sales and service of surface drills, underground loaders and underground trucks. The products will be designed for the specific needs of midmarket customers and will be sold under an independent brand. While the initial focus will be to supply the products for the Chinese market, the goal of the joint venture will also be to become the leading midmarket mining equipment supplier for other selected parts of the world.
“This joint venture agreement is in line with Sandvik’s strategy to develop a strong foothold in the fast expanding midmarket for mining equipment,” said Lars Engström, president, Sandvik Mining. “I am very excited to make this important move to expand Sandvik’s midmarket offering with an experienced industrial partner like Lingong.”