All data are collected in the Fiscal Year of 2008-2009.

Zambia / Energy, Mining, Resources , Manufacturing , Distribution, Retail

Sandvik is a high-technology, engineering group with advanced products and a world-leading position within selected areas. Worldwide business activities are conducted through representation in 130 countries.

The Sandvik Group conducts operations within three core areas-Sandvik Tooling, Sandvik Mining and Construction, Sandvik Materials Technology - with responsibility for research and development (R&D) and production and sales of their respective products. Seco Tools, an independent, publicly listed company, is also a member of the group.

Sandvik Mining and Construction is one of the world’s leading providers of equipment and solutions for mineral-exploration, surface and underground mining, bulk-materials handling and environmental restoration.

Sandvik Mining and Construction Zambia (SMCZ) is involved with the Zambian Copper mining industry for the supply of equipment and parts, as well as full-maintenance and repair contracts. The majority of the mines’ current operating fleets are maintained by SMCZ.

Sandvik was founded in 1862 by Göran Fredrik Göransson to build new steelworks at Sandviken-150 miles north of Stockholm, the capital of Sweden. Johan Holm, the main financial backer of Göransson's company, however, got into financial difficulties that resulted in the company's downfall. The company was declared bankrupt in 1866; after financial restructuring, Sandvikens Jernwerks (Steelworks) Aktiebolag was founded in May 1868. Anders Henrik Göransson, the son of the founder, became the manager of the new company and set Sandvik on the course that would lead to its future success.

In 1971 sales of cemented-carbide products exceeded those of steel products for the first time. In 1972 this was acknowledged by a change in the company's name from Sandvikens Jernwerks Aktiebolag to Sandvik AB.

The pace of expansion through acquisitions in Sweden and abroad was stepped up after 1967. In 1968 a joint venture, the Saeger Carbide Corporation was set up in the United States (US) with the Greenleaf Corporation. Between 1970 and 1973, manufacturers of rock drilling equipment in France and Spain were acquired. In 1972 the US rock drilling manufacturing operation of another Swedish steel company, Fagersta, was purchased. In 1973 the U.K.-based Wickman-Wimet group was acquired, and during 1978 and 1979 tool manufacturers in Germany and France were bought. Between 1971 and 1974 the steel division made acquisitions in Spain, West Germany, and the United Kingdom; saw, hand-tool, and conveyor manufacturers were also taken into the group. In 1993 Sandvik formed a subsidiary in China, Sandvik China Ltd., which began construction of a cemented-carbide tools factory in Langfang City.

During 1997 Sandvik took full control of Tamrock, Kanthal, and Precision Twist Drill. Finland-based Tamrock, which Sandvik acquired in two phases in 1996 and 1997, was a world-leading maker of rock-drilling equipment. The three main operations of Tamrock were combined with Sandvik Rock Tools to form a new Sandvik Mining and Construction business area. This area included four separate business sectors: the newly named Sandvik Tamrock, producer of drilling rigs, loaders, trucks, hydraulic hammers, and cemented-carbide products; Voest-Alpine Eimco, maker of equipment and tools for the mining of coal and other soft minerals; Driltech Mission, maker of drilling rigs and cemented-carbide tools for rotary and down-the-hole drilling; and Roxon, provider of equipment for conveyors and systems for handling of bulk materials.

The merger of Sandvik Zambia Ltd and Tamrock Zambia Ltd was completed in January 1999 and the name changed to Sandvik Tamrock Zambia Ltd and later to Sandvik Mining and Construction Zambia Ltd.

Plot 4077
Cnr Lilongwe & Dr Aggrey Street, off Chibuluma Road
Kitwe
Zambia
Phone: +26096 990001
/990004
+260 2 211144/212545/218096

Sandvik's business concept is based on a unique competence in materials technology. This has resulted in a world-leading position in three core areas: cemented-carbide and high-speed steel tools for metalworking applications and blanks and components made of cemented carbide and other hard materials; machinery, equipment and tools for rock-excavation; and stainless and high-alloy steels, special metals, resistance materials and process systems.

SMCZ is involved with the Zambian Copper mining industry for the supply of equipment and parts, as well as full-maintenance and repair contracts. The majority of the mines’ current operating fleets are maintained by SMCZ. Guarantees on fleet performance criteria, that have a direct impact on the mines’ profitability have been offered by SMCZ under these contracts. Drill steel management has also been introduced at some mines, along with long-hole drilling.

SMCZ has 5 000m² of buildings, comprising fabrication facilities and workshops equipped with horizontal and portable line borers, a hydraulic workshop, a hydraulic drifter repair shop, sand blasting facilities, component rebuild facilities and a warehouse. Vehicle rebuilds have been carried out in the workshops since 1994, with 80% of these being loaders.

Its policy is to remain flexible to a particular client’s needs. An example of this is the unique Maintenance Contracts negotiated with Mufulira Mine for the supply of loader buckets on a cost-per-hour basis. The buckets are equipped with a special “wear package” before being despatched underground and are thereafter checked and repaired during routine servicing on a daily basis in the underground workshops. This service has proven to be of great benefit to the mine because, as a result, the life of the bucket between repairs has been significantly increased SMCZ also offer solutions for many applications in the construction industry, including surface rock excavation, tunnelling, demolition, recycling and road rehabilitation.

SMCZ’s range of products includes rock tools, drilling rigs, loaders and trucks, crushing and screening machinery and bulk-materials handling systems.

In 2008 the Group had 50,000 employees; 16,800 in Mining and Construction and 450 in Zambia.

In 2008 the Group had sales of approximately SEK 93 billion.

About 94 percent of Sandvik's sales are from outside Sweden, with 39 percent stemming from European Union countries (other than Sweden), 25 percent from North America (including Mexico), and 15 percent from the Australasian region.

SMCZ is the single-largest supplier of underground equipment to the Zambian copper mining industry-a position it has held for the past 15 years. In the past seven years it has also become the biggest service provider to the mining industry for underground equipment performance contracts.

Sandvik’s operations in Zambia account for 40% of the company’s exploration business interests.

According to Sandvik, “Sandvik shall develop, manufacture and market highly processed products, which contribute to improve the productivity and profitability of our customers. Operations are primarily concentrated on areas where Sandvik is-or has the potential to become-a world leader. Products and services offered by the Group shall provide customers with maximum value in terms of performance, quality, speed, safety, flexibility and total economy. Sandvik shall be the obvious first choice for customers. “

Throughout the years Sandvik succeeded as a result of its policies of investment in the latest technology and by developing specialty products to be sold in world markets. Sandvik works in a decentralized fashion with customer-oriented, financial, social and environmental goals. The overall financial goals are based on the Group’s world-leading positions in various product areas, along with a strong global presence, a considerable commitment to R&D as well as efficient production and logistics. The goal for Sandvik’s organic growth is based on: increased market shares in current and new markets; and new products; new application areas with a high growth potential.

Sandvik’s long-term strategy builds on the interaction of a number of strength factors that include advanced and broad based R&D, high value-added products, in-house manufacturing, primarily direct sales to end customers, own market channels and efficient logistics systems, financial strength and a strong corporate culture.

Company acquisitions are part of Sandvik’s aggressive growth strategy, namely, to consolidate and advance positions in the Group’s priority areas. Acquired operations add new products and new know-how, as well as strengthening existing business, providing entry into new markets and opening the potential for a stronger presence in areas with high growth and favourable profitability.

Company acquisitions during 2008 include: the German system-technology supplier Aubema Beteiligungs GmbH and its subsidiaries in Germany and China; the South African company Corstor International (Pty) Ltd., which is a leading company in the manufacture and sale of borehole core storage and handling systems for the mining and
exploration industries; the Norwegian firm Teeness ASA-a market-leading manufacturer of anti-vibration tools used in the aerospace and energy segments; the British medical-technology company Eurocut Ltd., which manufactures medical instruments and implants for the orthopedic sector; a minority interest (49%) of US-based Precorp Inc., a tool manufacturer that develops, produces and distributes polycrystalline diamond (PCD) and cemented-carbide tools for the aerospace and automotive industries; and the British company BTA Heller Drilling Systems, a manufacturer of deep-hole-drilling tools.

The Göransson family was the company's major shareholder and controlled Sandvik until 1957, when additional capital was raised by an issue of shares, and the investment company Kinnevik acquired a stake in the company. The largest shareholders, in percent of voting rights as of 31 December 2008, were AB Industrivärden (11.5), J.P. Morgan Chase Bank (10.5) and Svenska Handelsbanken's Pension Foundation (4.0).

SMCZ is a 100% subsidiary of Sandvik.

Any machinery or equipment acquired by a business enterprise conducting operations in a priority sector or in priority products, or a rural enterprise, will be exempt from customs duties as specified under the Customs and Excise Act.

In 2003 SMCZ appealed to Government to help it remove obstacles that frustrate the smooth running of the company. The company was having problems in recovering money held up within the system of the Zambia Revenue Authority (ZRA) through import Value-Added Tax (VAT) because money had to be paid through third parties. US$1.25 million was held up within the ZRA system and it was difficult for the company to recover the money unless third parties made efforts to get it. At the time then deputy Minister of Commerce, Trade and Industry, Geoffrey Samukonga, said Government was amending the Investment Act to ensure that both investors and locals benefited. He added that his ministry was concerned at the demise of industries in the country and would try to put up measures that would help resuscitate them.

SMCZ is rapidly taking its place as market leaders in the supply of rock processing equipment into Zambia having introduced the H6800 Hydrocone Crusher to the Zambian market, with Mopani Copper Mines being the first to take delivery of these gigantic machines. This has enabled the mine to reduce the number of tertiary crushers required, which translates into lower costs, a better quality of product and more downstream savings, with increased availability and higher production