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Sandvik strengthens its position in the mining and construction industry – forms jointly owned company with US-based Smith International

Sandvik's Mining and Construction business area has concluded an agreement with the US company, Smith International, Inc. of Houston, Texas, regarding the establishment of a jointly owned company for the development, manufacture, marketing and service operations for roller cone bits for the mining and construction industry.

The venture will involve the business sector Sandvik Tamrock's roller cone bit business in Köping, Sweden, and the Smith Bits Mining and Industrial Tools division of Smith International. The new company – Sandvik Smith (Sandvik 50%, Smith 50%) – will have slightly more than 200 employees and annual sales of approximately SEK 360 M. The manufacturing units are located in Sweden, the United States and Italy. The head office will be located in Köping, where the largest plant will be located. Activity in this jointly owned company will commence on 1 October 2001, and will be consolidated in its entirety in Sandvik Mining and Construction.

Sandvik Smith will be a world-leading manufacturer of roller cone bits for the mining and construction industry with a comprehensive product range, and broad market coverage. The company will have full access to Sandvik's and Smith International's R&D resources globally.

"Through Sandvik Smith, customers gain access to the market's most comprehensive and advanced product range which increases their productivity noticeably. Formation of the new joint venture is also part of Sandvik Mining and Construction's aim to increase operations in the area of cemented-carbide tools," says Anders Ilstam, President of Sandvik Mining and Construction.

Sandviken, 14 August 2001

Sandvik AB; (publ)