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Atlas Copco to consolidate mining consumables operations in United States

March 23, 2016 14:05 CET

Stockholm, Sweden, March 23, 2016: Atlas Copco, a leading provider of sustainable productivity solutions, will move the operations of two of its mining consumables production facilities in the United States to an existing U.S. facility, which will be expanded. The move will increase efficiency in a challenging mining business, and ensure top-quality service for customers.
Atlas Copco will close the facilities in Grand Prairie, Texas, and Salt Lake City, Utah, which belong to the Rock Drilling Tools division in the Mining and Rock Excavation Technique business area. About 140 people in total will be affected. The production will move to Fort Loudon, Pennsylvania, where investments will be made in people and the facility.

“We have world-class products, and this move will make us more efficient and further improve productivity for customers,” said Johan Halling, President of the Mining and Rock Excavation Technique business area. “The mining market is going through a difficult period. Sadly, the measures taken will also affect some of our employees.”

In Grand Prairie, Atlas Copco manufactures rock excavation products. The transition of those production capabilities will begin around November 2016 and be completed in 2017.

The Salt Lake City facility produces drill bits; the transition of its production capabilities will be completed by mid-2016. Both facilities serve mainly the U.S. market. There will be approximately MSEK 65 (MUSD 7.6) in restructuring costs, which will be booked starting in the second quarter 2016 and into 2017.
Atlas Copco is an industrial group with world-leading positions in compressors, expanders and air treatment systems, construction and mining equipment, power tools and assembly systems. With innovative products and services, Atlas Copco delivers solutions for sustainable productivity. The company was founded in 1873, is based in Stockholm, Sweden, and has a global reach spanning more than 180 countries. In 2015, Atlas Copco had revenues of BSEK 102 (BEUR 11) and more than 43 000 employees.

Atlas Copco’s Mining and Rock Excavation Technique business area provides equipment for drilling and rock excavation, a complete range of related consumables and service through a global network. The business area innovates for sustainable productivity in surface and underground mining, infrastructure, civil works, well drilling and geotechnical applications. Principal product development and manufacturing units are located in Sweden, the United States, Canada, China and India.
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