Overview
Sandvik Rock Processing Solutions
Sandvik Rock Processing Solutions experienced a mixed demand picture during the year. Demand in mining remained robust, driven by the need for parts, services and consumables, while investments in infrastructure were subdued. The strong contribution from acquisitions led to double-digit revenue growth in 2023.
Sandvik Rock Processing Solutions provides high-performing products and services to customers primarily in the mining and infrastructure industries. We have world-leading products and services for applications in crushing, screening, feeding, train loading, breaking, demolition and recycling. Our products, services and flexible maintenance programs increase productivity, safety and uptime and reduce costs. Thanks to our strong innovation capabilities, in combination with a deep knowledge of our customers’ processes and needs, we continue to introduce products, energy-efficient solutions and new digital technologies that enable our customers to run more sustainable operations. An important strategic priority is to continue to leverage on our fine crushing technology, with the aim of reducing the high energy usage in the industry.
Market overview
Demand in the mining sector remained robust, driven by favorable mineral price levels, in particularly for copper and gold, and consequently high mining activity. Due to a challenging macro environment, with rising interest rates and inflationary pressure, the infrastructure demand remained weak. In addition, elevated stock levels, due to supply chain disturbances, also impacted the order levels negatively during 2023.
The decarbonization ambitions, in combination with declining ore grades enforce the need to extract more material at a deeper depth. These are trends that play in our favor to capture growth ahead.
2023 in figures
Revenues by customer segment
Revenues by market area
|
2022 |
2023 |
||||
|---|---|---|---|---|---|---|
Order intake, MSEK |
9,874 |
11,238 |
||||
Revenues, MSEK |
9,587 |
11,472 |
||||
Adjusted EBITA1), MSEK |
1,530 |
1,661 |
||||
Adjusted EBITA margin1) % |
16.0 |
14.5 |
||||
Return on capital employed, % |
16.7 |
8.6 |
||||
Number of employees2) |
2,919 |
2,946 |
||||
Gender balance (men/women), % |
85/15 |
82/18 |
||||
Women in managerial positions, % |
19.2 |
20.8 |
||||
Lost Time Injury Frequency Rate (LTIFR) |
5.1 |
2.8 |
||||
Total Recordable Injury Frequency Rate (TRIFR) |
7.9 |
7.0 |
||||
|
||||||
Product portfolio
Equipment for crushing, screening, feeding, train loading, 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, FLSmidth, WEIR and Terex.
Infrastructure
Some global competitors present in several niches: Metso, 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.