Epiroc to exit handheld drilling consumables business in China
Monday, October 21st, 2019
Epiroc AB, a leading productivity partner for the mining and infrastructure industries, has decided to restructure the manufacturing of handheld rock drilling equipment and tools in China, exiting unprofitable businesses. It is part of Epiroc’s ongoing actions to optimize its product portfolio and exit non-core areas to increase focus and efficiency.
The restructuring mainly involves closure of the production facility for handheld drilling consumables in Shandong, China, and divestment of certain assets. It is expected to be finalized by year-end 2019. The business has annual revenues of approximately MSEK 125, and about 300 employees will be affected.
“It is unfortunate that some of our employees are negatively affected. However, this restructuring is necessary to ensure our long-term competitiveness,” said Helena Hedblom, Senior Executive Vice President Mining and Infrastructure. “We continue to optimize our product portfolio to focus on strategic core areas.”
As previously communicated, in September Epiroc completed the divestment of its geotechnical consumables product line.
The restructured and divested businesses are part of the Rock Drilling Tools division in the Tools & Attachments segment, and related costs of MSEK 179 have been booked in the third quarter.http://www.epirocgroup.com