(EnergyAsia, May 6 2011, Friday) — Swedish engineering group Sandvik AB said its mining and construction unit and China’s Shandong Energy Machinery Co have signed an agreement to form an equal joint venture to produce and sell coal mining equipment.
The joint venture is expected to become operational by end-2011 subject to customary regulatory approvals.

Based in Xintai in China’s Shandong province, Shandong Energy Machinery designs and manufactures equipment for the Chinese underground coal mining market. It is a subsidiary of Xinwen Mining group, one of China’s top 15 coal mining companies.

The joint venture will focus on sourcing, assembling, selling and servicing roadheaders for the Chinese coal mining market.

Sandvik said it will provide product know-how and technology while Shandong Energy Machinery will contribute with local sourcing skills and customer application knowledge.

Sandvik said the joint venture will be selling premium roadheaders under the Sandvik brand with the long-term goal of becoming China’s leading supplier of premium roadheader.

“This joint venture agreement is in line with Sandvik’s long-term strategy of continued profitable growth and our aim to become a leading equipment supplier to the Chinese coal mining market. It gives us a great opportunity to further develop our well proven underground coal mining equipment in close cooperation with our Chinese customers, as well as expanding our local set up to provide the best service and support to our customers,” said Lars Josefsson.