Sandvik Expands Its Mining Product Lines

The Sandvik Group (Sandvik AB), headquartered in Sandviken, Sweden, continues to expand its worldwide operations growth. After recent acquisitions, including Tamrock, headquartered in Tampere, Finland, the company now has annual sales of more than US$5 billion (SEK 40 billion). With the acquisition of Tamrock, Sandvik has further increased its interests in the mining industry. Sandvik Rock Tools, a familiar name in the mining industry, is one of the world's leading suppliers of rock-drilling tools. And Tamrock is one of the world's leading suppliers of drilling machinery, loaders and equipment for rock-excavation operations. Sandvik believes that the two companies combined offer customers "maximum productivity through total system solutions, including machinery, service and tools." In 1997, Tamrock posted sales of US$940 million (SEK 7.5 billion). In addition to its expertise in drilling tools and equipment, Sandvik is supported by its collective resources in specialty steel and cemented carbide. These resources include extensive research and development capabilities, with annual investments in R&D now at about US$150 million. As a result of the R&D programs, internal expansion and acquisitions, the company has nearly doubled in size during the past four years. From 1994 to 1997, nearly US$1 billion was invested in internal growth and another US$825 million has gone towards acquisitions. Return on net assets is now 22% annually. In addition to Tamrock, acquisitions of interest to the mining community include Drillmaster Inc., Houston, TX. The acquisition of Drillmaster (by Sandvik Rock Tools) has further strengthened Sandvik's position in down-the-hole drilling tools. Other major recent acquisitions by Sandvik include Kanthal, a Swedish manu¬facturer of metal and ceramic-resistant materials for electric heating furnaces, household appliances and elec¬tronics, and Precision Twist Drill, Crystal Lake, IL, one of the leading producers of high-speed cutting tools. With more than 38,000 employees worldwide, the Sandvik Group is divided into six separate business areas. Each area is responsible for its own R&D, production and sales: ? Sandvik Mining and Construction. Including Tamrock and Sandvik Rock Tools, this business area boasts of offering the most comprehensive range of "rock-working" products. These include drilling rigs, loaders, rock-excavation equipment and rock drilling tools. ? Sandvik Specialty Steel. This area includes Sandvik Steel and Kanthal, manufacturers of stainless steel tube, strip wire and bar, as well as high-alloy steel and specialty metals. ? Sandvik Tooling. This business area consists of tools and tooling for metalworking applications. Sandvik Coromant is a market leader in the development, manufacture and marketing of tools using cemented carbide, ceramics and extremely hard materials, such as diamond and cubic nitrite. CTT Tools is the world's largest manufacturer of high-speed steel tools and is now expanding operations into solid cemented-carbide tools. ? Sandvik Hard Materials. This segment produces a full range of "hard materials," ranging from cemented carbide to diamond. This area manufactures and markets a full range of cemented carbide blanks for tool manufacturers, as well as components and rolls. ? Sandvik Saws and Tools. This business area manufactures high-quality handsaws and metal saw blades, as well as hand tools ranging from wrenches to chains for logging machines. ? Sandvik Process Systems. This segment manufactures steel belts, process systems and automatic sorting systems for the chemical