Sandvik has announced that it is merging Sandvik Mining and Sandvik Construction into one business called Sandvik Mining and Rock Technology.
The company announced in a press release that the new structure will go into effect July 1 with current Sandvik Mining president Lars Engstrom taking over as the inaugural president of Sandvik Mining and Rock Technology.
The newly merged business is set to have a decentralized business organization. There will be different product areas for the different product offerings, and Sandvik said each product area has “full responsibility and accountability for its respective business.”
“Products developed for the customer segments mining and construction are based on common technologies with a similar aftermarket offering. In addition, manufacturing units are already largely shared with to some extent shared front line resources. By joining the operations into one business area we achieve a leaner and more efficient structure. The decentralized business model enables an even clearer focus and faster response to our customers,” Sandvik President and CEO Björn Rosengren said in a statement.
Sandvik Construction president Dinggui Gao will leave the company on July 1 when the new organization goes into effect.
“I would like to take the opportunity to thank Dinggui Gao for his dedicated work in supporting the merger of the new organization. I would like to express my appreciation for his work to drive Sandvik Construction, resulting in documented improvements. I wish him all the best in his future career,” Rosengren said.
The company said it would have more information about the new structure at its Sandvik Capital Markets Day on May 24.