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Sandvik acquires Austrian drilling equipment manufacturer

The Sandvik Group, through its Sandvik Mining and Construction business area, has signed an agreement covering the acquisition of the drilling rig manufacturing operations within the Austrian companies Böhler Pneumatic International GmbH and Böhler Pneumatic International GmbH&Co KG (combined, referred to as BPI), members of the Austrian Neuson Group.

The acquisition is subject to the approval of the appropriate authorities.

Manufacture of BPI's drilling product line, which has annual sales of approximately SEK 120 M, will form a separate division within Driltech Mission, a business sector of Sandvik Mining and Construction. The acquired operations will be relocated to Sandvik's existing production unit in Zeltweg, Austria, in order to capitalize on production-related synergies.

"We have the most advanced product program for the world's mining and construction industries," says Anders Ilstam, President of the Sandvik Mining and Construction business area. "BPI's compact rigs represent an important complement to our offering in the field of down-the-hole and rotary drilling. Through our international marketing organization, there are good prospects for significantly increased sales of these products."

Sandviken, 24 March 2000

Sandvik AB; (publ)

Sandvik is a high-technology engineering Group with advanced products and a world-leading position within selected niches – tools for metalworking, machinery and tools for rock excavation, stainless steels, special alloys, high-temperature materials and process systems. The Group has 34,000 employees in 300 companies in 130 countries and annual sales of approximately SEK 40 billion.

Sandvik Mining and Construction is a business area within the Sandvik Group and a world-leading supplier of drilling and rock excavation machinery, tools and service for the mining and construction industries. Annual sales amount to approximately SEK 9,000 M, with slightly more than 6,000 employees.

Neuson AG is an Austrian Group producing miniexcavators and dumpers, with annual sales of about SEK 1 billion and 450 employees.

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