Overview
Sandvik Mining and Rock Solutions
Favorable mineral prices drove solid demand in parts, services and consumables while equipment revenues declined. Solid momentum was noted in Digital Mining Technologies. Strategic progress was achieved through innovations and an acquisition that strengthens our automation offering.
Sandvik Mining and Rock Solutions is a globally leading supplier of equipment and tools, parts, services, digital solutions and sustainability-driving technologies for the mining and infrastructure industries. We provide high-performing products and services that increase our customers’ productivity and safety, extend uptime and reduce costs and environmental impact. Our offering includes solutions for mine planning, rock drilling, rock cutting, loading and hauling, tunneling, ground support and quarrying.
We are shaping the sustainable mine of the future through our electric and autonomous solutions, and we provide end-to-end optimization via connected digital solutions, including mine planning and remote monitoring services. Our mine automation systems cover all aspects of automation, from single pieces of equipment to full fleet control.
Market overview
Favorable mineral prices spurred demand across regions throughout the year. Macro economic uncertainty made mining customers more cautious to invest in new equipment and instead they prioritized maximizing the usage of existing machines, leading to increased maintenance needs. Our customers continuously look to improve safety, and maximize uptime and productivity, resulting in strong demand for our digital and autonomous solutions.
2024 in figures
Commodity split
Revenues by market area
|
2023 |
2024 |
||||
|---|---|---|---|---|---|---|
Order intake, MSEK |
64,527 |
64,404 |
||||
Revenues, MSEK |
65,690 |
63,607 |
||||
Adjusted EBITA1), MSEK |
13,716 |
12,950 |
||||
Adjusted EBITA margin1), % |
20.9 |
20.4 |
||||
Return on capital employed, % |
24.4 |
21.6 |
||||
Return on capital employed, excluding amortizations of surplus values, % |
25.4 |
22.5 |
||||
Number of employees2) |
17,019 |
17,278 |
||||
Gender balance (men/women), % |
81/19 |
81/19 |
||||
Women in managerial positions, % |
20.1 |
20.7 |
||||
Lost Time Injury Frequency Rate (LTIFR) |
1.0 |
0.9 |
||||
Total Recordable Injury Frequency Rate (TRIFR) |
3.3 |
3.6 |
||||
|
||||||
Product portfolio
Equipment for drilling, bolting, cutting, loading and hauling. Drilling consumables (rock tools), service, spare and wear parts. Comprehensive digital solutions to drive efficiency and process optimization.
Market characteristics
Mining
Consolidated customer base of some 200 global major and junior miners. Remote locations, decreasing ore grades and deeper mines as well as safety requirements drive demand for more advanced solutions, including semi-automated to fully automated solutions. Significant parts, services and consumables business.
Infrastructure
Sandvik is active in the niche area of rock excavation. The customer base is fragmented with more than 25,000 individual customers. Localized offering and local competition.
Demand drivers
Mining
- GDP growth rate and resource-intensive industry development
- A growing middle class
- Metal and mineral prices
- Electrification for the green transition
- Declining ore grades
- Production levels in existing mines and expansion projects (greenfield and brownfield)
- Productivity improvements and new technology, for example automation and electrification
- Demand in the areas of environment, health and safety
Infrastructure
- GDP growth/urbanization
- Infrastructure investments and spending
- Government stimulus programs
- Aggregates production
- Cement consumption
Competitive landscape/Major competitors
Mining
Mainly global competitors such as Epiroc, Caterpillar and Komatsu Mining.
Infrastructure
Some global competitors present in several niches: Epiroc, Caterpillar and Furukawa. Many local players.
Go-to-market model
Mining
Approximately 95 percent direct sales with worldwide service network.
Infrastructure
Due to a fragmented customer base, 50 percent of sales is via distributors. Global sales and service organization.
Growth strategy
Grow the parts, services and consumables business on the installed base. Expand market share in surface drilling. Climb the service ladder by data-driven productivity and advanced services. Automation, electrification and exploring complementary technologies and offerings through mergers and acquisitions.
Strategic risk management
Various forms of business environment risk 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.