Sandvik Smith to become wholly owned subsidiary
Through the Sandvik Mining and Construction business area, Sandvik has reached an agreement with the US-based company Smith International Inc., Houston, Texas, to acquire Smith International's 50% interest in Sandvik Smith AB.
Sandvik and Smith International have jointly owned (Sandvik 50%, Smith 50%) Sandvik Smith since 2001. Operations comprise development, manufacturing, marketing and related technical service support of roller-cone bits for the mining and construction industries. The company's registered office and headquarters are based in Köping, Sweden, with production units in Sweden and India, complemented by a comprehensive global sales organization with 350 employees.
Sandvik Smith is fully consolidated within Sandvik Mining and Construction since 2001.
"Sandvik Smith offers customers the most extensive and advanced product range in the market that increase their productivity. Through Sandvik Smith becoming a wholly owned subsidiary, we increase cooperation within the business area with regard to product development and sales," says Lars Josefsson, President of Sandvik Mining and Construction. "The acquisition is part of Sandvik Mining and Construction's strategy to strengthen its offering in the surface mining customer segment. Cooperation with Smith International has been an important element in establishing Sandvik Smith's leading position. More importantly, Smith International and Sandvik have agreed on a key technical cooperation program going forward that will provide for Sandvik Smith's continued leading technology and performance position in the market. Smith International will also continue to deliver certain products to Sandvik in the future."
Sandviken, 2 September 2005
Sandvik AB; (publ)