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Sandvik Mining and Construction consolidates production in North America

Sandvik Mining and Construction has decided to consolidate production of mining equipment in North America to its plants in Alachua, Florida in the US and Burlington, Ontario, Canada.

The plant in Bluefield, West Virginia, which mainly manufactures equipment for the continuous mining of coal, will be closed.

Sales, service and administration are being transferred to Sandvik's facilities in Bristol, Virginia. The service and repair workshops in Bolt, West Virginia, and Brier Hill, Pennsylvania, as well as strategically located warehouses will remain open.

The restructuring will be carried out at the beginning of 2003 and affects about 150 persons.

The market for coal mining and the price of coal has fallen dramatically since 2001 and is expected to remain at a low level. Consequently, rationalization measures are necessary to also attain profitability at a lower level of sales.

Sandviken, 26 November 2002

Sandvik Mining and Construction