Customers, agility and employees
Customer’s first choice
Sandvik collaborates with our customers for mutual benefit. In 2024, we signed a collaboration agreement with our customer Boliden for field testing and development of our battery-electric concept surface drill rig at its Kevitsa mine. The concept drill rig was introduced in 2023, combining the flexibility of battery operation with the endurance of a power cable. The harsh arctic conditions in northern Finland proved ideal for testing.
Diesel-electric mining equipment is seen by many within the industry as a way of achieving cleaner, more sustainable and more reliable mining, without the structural changes required for a fully electric operation. Diesel-electric equipment has a proven ability to combine the low-maintenance benefits of electric machines with the flexibility of diesel. In May 2024, global mining contractor Byrnecut signed a collaboration agreement with Sandvik to develop diesel-electric loaders and trucks, with the aim to boost sustainability, efficiency and productivity underground. In September 2024, global mining services provider Perenti signed a memorandum of understanding (MOU) with Sandvik, also centered on developing diesel-electric equipment for underground mines.
Sandvik won a SEK 1.9 billion order from mining company BHP to supply potash continuous mining systems to the Jansen potash project located in Saskatchewan, Canada. The project has the potential to become the largest potash-producing mine in the world, yielding potassium, a key ingredient of fertilizer.
Agile through cycle
Recurring revenue from parts, services and consumables contributes significantly to business resilience. In recent years, Sandvik has grown its active mining fleet, which secures long-term revenue from parts, services and consumables, a prioritized growth area. In 2024, our parts, services and consumables business, including digital services, reached record-high order levels and increased its share of revenues to 69 percent (66).
The competitiveness of our products and solutions enabled us to mitigate cost inflation with pricing. Sandvik protected the margin well through the flexibility provided by outsourced assembly at our production sites, prudent overall cost control and strong support from our restructuring programs.
In the Group-wide program of restructuring measures that was initiated during the year, Sandvik Mining and Rock Solutions is expected to deliver annualized savings of SEK 0.4 billion, and a run-rate of approximately 80 percent was already achieved in 2024. Coupled with the 2022 program, which delivered a run-rate of 80 percent, it supported margin resilience in a high-cost inflation market, and despite volume declines we managed to achieve an adjusted EBITA margin of 20.4 percent (20.9).
Employer of choice
Our ambition is to create a climate where employees feel they can thrive and pursue a career within Sandvik. In 2024, we saw high levels of employee engagement as well as an increase in the share of female managers, supported by initiatives such as a global partnership with International Women in Mining.
We run several global mentorship programs, pairing our leaders across Sandvik Mining and Rock Solutions with younger, less experienced employees. Incorporating a mixture of different backgrounds, geographies, and experience, these programs aim to foster a culture that values innovative thinking and diverse perspectives.
We continued our efforts to secure the competence and skills required for the ongoing technology shifts within electrification, automation, and digitalization. Staying in close dialogue with our customers to understand and map the expertise and training needed is key, and we invest in international university collaborations. In 2024, more than 400 service technicians graduated from Sandvik academy programs around the world.
During the year, we received external and internal recognition for being a family-friendly workplace. One example was the launch of a digital platform that guides employees through each stage of their family life.
Safety is our top priority and we conducted targeted campaigns and trainings to advance our zero harm vision.
