What economic and marketing fundamental considerations drove these two important entities to become one?
The high demand for mineral and material resources, coupled with a growing environmental awareness and a sharp upturn in the use of recycled and reclaimed materials has made the mobile crushing and screening sector one of the fastest-growing and developing markets in the capital equipment arena. Sandvik recognised the potential of this burgeoning marketplace initially through sales of its own equipment, through feedback from customers using its Tamrock drill rigs and Rammer range of hydraulic hammers, attachments and booms and more recently, through the acquisition of Fintec. Furthermore, Sandvik is a recognised technology leader in the crushing and screening arena and is well- placed to deliver value and innovation to customers. Having recognised the potential of this market sector and the opportunities for horizontal and vertical market integration, Sandvik realised that it needs an even greater presence, one that was attained with the subsequent acquisition of Extec. Together, these combined brands represent the world’s largest and most comprehensive range of mobile crushing and screening equipment.
How the new dispensation as one entity would provide customers a single, wider source of high quality crushing and screening options as efficiently as before?
As a company, Sandvik firmly believes in the strength of its global brand whilst utilising the experience, expertise, and knowledge of the companies it has acquired. As it has proved with its acquisition of the Rammer hydraulic breaker brand, which has just been rebranded as Sandvik, the company is well-versed in utilising this acquired experience and expertise whilst integrating the acquired company into its corporate structure. In Sandvik’s experience, customers appreciate the combination of highly experienced and highly focused brands backed and supported by a globally recognised entity. In addition, the Sandvik mobile crushing and screening equipment line provides excellent synergy with other products in the Sandvik stable including its drilling, loading, and haulage solutions.
What would be the impact of this unique combination on global construction & mining equipment market and resultant marketing gains for the new entity?
The combination and rationalisation of the Sandvik, Extec and Fintec product portfolios has created the world’s largest and most comprehensive line-up of mobile crushing and screening solutions. This provides our customers with a one-stop-shop solution for all their mobile crushing and screening needs, regardless of market sector, application or geographic location.
Of the wide products range of the two companies, what segment of products and services are expected to grow in the present infrastructure boom being witnessed in Asian market and how important is Indian market in your Asia growth strategy?
Worldwide, Sandvik has secured a leading position in the key fields of quarrying, construction, demolition and Recycling by the acquisition of the Extec and Fintec Brands. The last decade has seen a strong growth in India in quarrying and construction industry. The future sees a continued fast spaced growth in these sectors as well as building up the demolition and Recycling business. Indian subcontinent has a traditional strong market in the Mining Sector where the Extec equipment has already established itself as the market leader.
Obviously, as market enjoying massive expansion, India represents a major opportunity for Sandvik mobile equipment, that is why we have invested heavily in providing the local sales, service, parts and logistics support, the market requires.
Your future plans to introduce new products and services catering to India’s specific construction and mining industry requirements.
Both Extec and Fintec have a proud history of innovation driven by the specific needs of their customers. By harnessing Sandvik’s renowned technological expertise, that is something we would expect to continue under the Sandvik name. We rely upon the feedback from our customers, our dealers and our distributors to drive design changes and modifications to suit specific markets, applications and geographies, and we are always striving to find faster, more productive and more profitable solutions for our customers.
Together–We have been very actively associated with the Indian Mining and Construction Industry over long years and have gained enormous experience on the specific market demands and local conditions. Accordingly, with the huge infrastructure and resources now available, we have already planned a new set of equipment customised to suit this very market in terms of streamlining the applications to commensurate with the local conditions, the key being to generate a higher return on the investments. This includes both consolidating the present crushing and screening business with new machine configuration as well as developing newer technologies to combat the new upcoming challenges that are coming to this huge market.
