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Sandvik awarded major materials-handling contract in Bulgaria

Sandvik Mining and Construction has received an order for materials-handling system from Alstom, a global company for infrastructure in energy and transport.

The order, valued at about SEK 400 M, comprises a turnkey lignite and limestone handling system at the Maritza East 1 power station southeast of Sofia, Bulgaria.

The advanced system has a capacity exceeding 32,000 tons per day. The Sandvik delivery will include a train unloading station, stacker/reclaimers, belt conveyors, crushers and a limestone handling system. The coal-fired power plant is scheduled to start operations in 2009.

Earlier this year, Sandvik completed the delivery of a materials-handling system for coal and iron ore for the port of Burgas in Bulgaria. The Maritza East 1 project is strategically important for Sandvik in establishing close cooperation pending Alstom's continued expansion plans in the power sector.

"In 2006 we have received orders exceeding SEK 1,000 M for handling systems for coal-fired power stations. Sandvik with its comprehensive knowledge in mining, handling and preparation of coal is well placed to capture the future opportunities," says Lars Josefsson, President of Sandvik Mining and Construction.

Sandviken, 7 December 2006

Sandvik AB; (publ)