Overview
Sandvik Rock Processing Solutions
Sandvik Rock Processing Solutions had another strong year in 2022. Underlying demand continued to be favorable and the business area remained agile. Strong sales of parts, services and consumables drove organic growth and the acquisition of SP Mining significantly strengthened our offering towards the mining industry.
Sandvik Rock Processing Solutions is focused on accelerating profitable growth within rock processing. We do this by bringing value to customers through high-performing products that increase productivity and safety as well as services and flexible maintenance programs that increase uptime and reduce costs. The rock processing applications include crushing, screening, feeding, breaking, demolition and recycling. They are primarily used by the mining and infrastructure industries.
As part of the overall Sandvik sustainability and digital shift strategies, we are continuously making our rock processing offering more energy-efficient and developing the digital assistant platform SAM™.
Market overview
Underlying demand in the key mining and infrastructure industries remained strong despite the backdrop of challenging world events. Higher interest rates and inflationary pressures affected infrastructure demand negatively in Europe while infrastructure and mining demand in other key regions and end markets remained robust. The long-term trend of declining ore grades in the mines is favorable for our business since more material needs to be processed. This led to investments which benefited Sandvik, particularly in the parts, services and consumables category. The worldwide demand to make infrastructure projects more sustainable is also continuing to make our solutions attractive to customers.
2022 in figures
Revenues by customer segment
Revenues by market area
MSEK |
2021 |
2022 |
||||
|---|---|---|---|---|---|---|
Order intake |
8,524 |
9,874 |
||||
Revenues |
7,610 |
9,587 |
||||
Adjusted EBITA1) |
1,265 |
1,530 |
||||
Adjusted EBITA margin1), % |
16.6 |
16.0 |
||||
Return on capital employed, % |
28.7 |
16.7 |
||||
Number of employees2) |
2,091 |
2,919 |
||||
Gender balance (men/women), % |
85/15 |
85/15 |
||||
Women in managerial positions, % |
15.9 |
19.2 |
||||
Lost Time Injury Frequency Rate (LTIFR) |
2.1 |
5.1 |
||||
Total Recordable Injury Frequency Rate (TRIFR) |
3.9 |
7.9 |
||||
|
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Overview
Product portfolio
Equipment for crushing, screening, feeding, breaking, demolition, tools, service, spare parts, wear parts, digital solutions and sustainability-driving technologies for rock processing.
Market characteristics
Mining:
Consolidated customer base of some 200 global major and junior mining companies. Remote locations, decreasing ore grades as well as increased safety requirements drive volume output and the need for eco-efficient comminution as customers focus on energy and water conservation. Significant business in parts, services and consumables.
Infrastructure:
Sandvik is active in the rock processing areas of crushing, screening, feeding, demolition and recycling. The customer base is fragmented with thousands of individual customers. However, there is an ongoing consolidation towards larger capacity quarries driven by productivity, cost per ton, sustainability and safety. Regional offerings and regional competition.
Demand drivers
Mining:
- GDP growth rate and resource-intensive industry development
- A growing middle class
- Metal and mineral prices
- Declining ore grades (fewer minerals extracted per ton)
- Production levels in existing mines and expansion projects (greenfield and brownfield)
- Productivity improvements and new technology, for example digital solutions and electrification
- Demand in the areas of environment, health and safety, for example eco-efficient comminution, energy and water conservation.
Aggregates:
- GDP growth/urbanization
- Infrastructure investments and spending
- EHS and sustainability trend for premium technology
- Aggregates and cement production
- Growth in emerging markets.
Demolition and recycling:
Laws and regulations, transformation in customers’ demand, focus on recycle and reuse.
Competitive landscape/Major competitors
Mining:
Mainly global competitors such as Metso Outotec, FLSmidth, WEIR and Terex.
Infrastructure:
Some global competitors present in several niches: Metso Outotec, Terex, Keestrack, Furukawa and Epiroc. Many regional players.
Go-to-market model
Mining:
Direct sales approximately 90 percent with worldwide service network.
Infrastructure:
Due to a fragmented customer base, approximately 75–80 percent of sales is via distributors.
Growth strategy
Grow sales of parts, services and consumables on the installed base and new offerings. Sales channel optimization, direct sales, distributor sales and OEM. Eco-efficient rock processing offering, automation, digitalization, electrification and exploring complementary technologies and offerings through mergers and acquisitions.
Strategic risk management
Various forms of business environment risks with an impact on the mining and infrastructure market in general, such as increased market competition with new technological developments and the emergence of new competitors, fluctuations in commodity prices and compliance-related risks. Political uncertainty in some parts of the world.