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Sandvik transfers rock-drilling production to Sweden

Sandvik's Mining and Construction business area has decided to close its unit for the manufacturing of down-the-hole drilling tools in Mexico, with about 60 employees, and transfer the operations to Sandvik Tamrock Tools' rock-drilling plant in Sandviken, Sweden, which already produces similar tools.

Prior to the transfer, which will be made during 2001, about SEK 25 M will be invested in new machinery and new technology at Sandviken. The increased production will create some 20 new full-time positions and about 10 temporary jobs.

"This measure is a step in our strategy to create fewer and larger production units and, as a result, to increase productivity and further improve competitiveness," says Anders Ilstam, President of Sandvik Mining and Construction.

Sandviken, 20 February 2001

Sandvik AB; (publ)

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