Capital Equipment News November 2017

started about a year ago, and about 70% of the parts used in the manufacturing process- es are already sourced locally, which is quite phenomenal,” says Eriksson. Ramping up production The facility began prototype operations in July this year and will initially produce the LH115L LHD. “Facility operations will follow a staged approach, with capacity ramping up based on customer demand,” says Steve Greisiger, Production Manager Jet Park, Product Area Load ad Haul. The facility has a dedicated staff comple- ment of 15 people at this stage, working on 10 assembly bays in the facility. Under the Sandvik model, fabrications are outsourced to external service providers, and this func- tion has been contracted to a local company. “We only import some special components such as drivetrains and engines,” says Si- mon Andrews, Vice President, Sales Area Southern Africa, Sandvik Mining and Rock Technology. “The latest investment represents an ex- citing new chapter in the company’s devel- opment and underscores our desire to play a part in the skills development and local manufacturing capabilities,” adds Andrews. Explaining Sandvik’s future plans for the new facility, Rosengren says the company will take one step at a time, and if all goes well, Sandvik is open to future expansion as demand peaks, reiterating that any ex- pansion project will be dictated by sales volumes. “We have established a good local supplier base that will make it easy for the next product we may decide to put on the lo- cal production line in future,” he says. Enter Sandvik LH115L The new facility has marked its inaugura- tion with the production of the LH115L, a new Sandvik 5-tonne low profile loader, a product that has been developed and optimised for local African mining condi- tions. The LH115L – which builds on the proven track record of its predecessor, the EJC115L – is the first Sandvik product to be manufactured locally, using local sup- pliers, locally-sourced components and a local workforce. “The LH115L will be manufactured only in South Africa. The design process focused on a number of local customer requirements and operating conditions. Several customers were consulted during the design stages to make sure that the product addressed criti- cal requirements of the local market,” says Eriksson. “The LH115L is based on our EJC115L. We have taken customer feedback and incorporated it in the design of the upgraded

QUICK FACTS

Close to 70% localisation level of material and component sourcing achieved

70

The facility has an initial staff complement of 15 people

Facility has a total of 10 assembly bays

Sandvik has invested R15 million in a new production facility

The new facility began prototype operations in July this year and will initially produce the Sandvik LH115L LHD.

well-acquainted with the challenges facing the mining industry and understands the im- portant modernising role that private invest- ment and local manufacturing can play in extending mine life, skills development and employment, as well as the achievement of sustainable, inclusive growth. “We have identified the opportunity to sup- port local industry through local manufacture of Sandvik products and localisation of ma- chines, supporting both employment and local suppliers in the process,” says Rosengren, adding that this highlights Sandvik’s commit- ment to meaningful contribution towards the growth of the South African economy. Speaking of local suppliers, Mats Eriksson, President for Product Area Load and Haul at Sandvik Mining and Rock Technology, says remarkably the facility has already achieved approximately 70% local content within a very short period. “The design process only

Africa with a R15 million investment into a new production facility at its Jet Park, South Africa base. Officially inaugurated on Sep- tember 5, 2017, the new 1 500 m² facility will initially be dedicated to local production of the Sandvik LH115L 5-tonne underground low profile loader. Björn Rosengren, President and CEO of Sandvik, says the investment is a vote of confidence in South Africa and neighbour- ing SADC countries. This is considering that Sandvik’s Mining and Rock Technology busi- ness, one of its three business divisions, gen- erates 15% of its global business in South Africa alone. Supporting local industry Rosengren notes that Sandvik Mining and Rock Technology has been operating in South Africa for 70 years, and during the seven-de- cade presence, the company has become

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