Growth, digitalization and sustainability
Shift to growth
Despite 2024 being a challenging year with weaker demand in infrastructure and, consequently, declining order intake and revenues, we made strategic progress. One strategic ambition is to leverage our offering in the crushing and screening business, which was strengthened by the acquisition of SP Mining in 2022. The ability to provide a full-service crushing and screening offering opens opportunities to expand in mining, and we have identified over EUR 150 million in synergies.
Sandvik is committed to addressing the energy challenge in the mining industry. More than 600 mines in the world use legacy grinding techniques and we see strong potential in our leading crushing technology and fast pace of innovation.
In 2024, we launched the upgraded 800i cone crusher series which enables higher crushed volumes and finer particles sizes. The crusher was well received among customers and, consequently, order intake for this model nearly doubled during the year.
Another strategic ambition is to increase the share of revenues from parts, services and consumables. During the year, revenues from parts, services and consumables grew to 61 percent (59) of total revenue.
Digital shift
Digital solutions are key to ensuring that we meet customer demands in terms of resource efficiency and productivity. Our digital platform, SAM by Sandvik, provides valuable information needed to keep crushing and screening equipment running, available and productive. In 2024, the platform’s usage rate increased by 40 percent and the number of active users nearly doubled.
During the year, we launched ACS-s, a series of energy-harvesting wireless sensors, connected with the digital platform SAM® and attached at strategic locations on a machine’s vibrating screen and feeder. The system provides operators and service technicians with real-time, easily comprehensible data on the condition of their equipment, enabling proactive maintenance decisions. The solution reduces downtime and high-impact repairs, leading to improved operational efficiency.
The digital shift creates opportunities for new business models. During the year, we began offering remote monitoring as a service. Benefits from this, such as access to predictive insights, technical support and optimization, enable increased productivity and availability for the customer. We noted strong interest from customers and foresee strong growth potential in this area.
Sandvik has a leading position in autonomous crushing equipment, built on solid experience gained since 1967 when our first automation system was introduced. Today, all models of cone crushers and the majority of hammers are automation-enabled and the degree of automated equipment in operation at our customers’ sites increased by 40 percent during the year.
We also launched ACS-c 5, a new automation system for the Sandvik® 800i cone crusher series. The new role-based interaction functionality facilitates the work of operators, maintenance personnel, and engineers by offering guidance, access to valuable data, and tools for proactive maintenance and optimization.
Customer response to our digital and automated offering has been better than expected and we reached the target of 60 percent of customers using digital and automated solutions by 2025, a full year ahead of schedule.
Sustainability shift
Sandvik provides mining and infrastructure customers with eco-efficient rock processing solutions that reduce their environmental impact. Through continuous improvements to our offering, we reduce the energy used per ton of material crushed at the customer site and extend service intervals.
In the mining value chain, where the ore is broken down into a fine powder, the grinding phase is very energy consuming. By working close to customers to optimize comminution circuits and incorporating the latest technology, Sandvik can reduce the material size from the crushing plant and facilitate the continued grinding. This leads to a more efficient process, where the grinding is partially replaced by fine crushing. Crushing is up to 10 times more energy efficient compared to conventional grinding, and as such reduces CO2 emissions.
Sandvik already provides a fully electric stationary crushing equipment offering. In our commitments to a more sustainable future and to lowering our customers’ operating costs, we offer a wide range of electric and hybrid solutions within our mobile crushing and screening offering.
We aim to reduce greenhouse gas (GHG) emissions in our own operations by enhancing energy efficiency and increasing the use of fossil-free energy. At our manufacturing facility in Svedala (Sweden), a heat recovery system reuses excessive heat from production, and an additional unit was installed in 2024. By sequencing the painting of mobile units at the Ballygawley (Northern Ireland) site, energy usage and costs were reduced.