Atlas Copco is reducing capacity at its facility in Örebro, Sweden, responding to weak demand for its mining equipment; 163 employees in Örebro will be affected, according to company officials.

Johan Halling, president of the Mining and Rock Excavation Technique business area, said he regretted the announcement but added that the company would do its best on behalf of its employees. “The market for mining equipment continues to be weak,” he said. “It’s unfortunate, but we will do our best in this difficult situation.”

Employees and local labor unions in Örebro were informed that 110 blue-collar workers and 53 white-collar workers will face layoffs. Altogether, more than 1,700 people currently work at Atlas Copco Rock Drills AB in Örebro, which manufactures equipment used in mines and quarries as well as for construction.

Atlas Copco’s Mining and Rock Excavation Technique business area provides equipment for drilling, and a range of consumables and services through a global network. These include well drilling and geotechnical applications. Product development and manufacturing units are located in Sweden, the U.S., Canada, China and India.