Sandvik integrates step by step
10 April 2008
Sandvik's integration of its surprise acquisition of leading crushing and screening companies Extec and Fintec, which was completed in May 2007, looks set to carefully step up a gear next year.
According to Thomas Schulz, president of Sandvik's construction division within the Mining and Construction business sector, speaking at a recent press event: “the transfer to the Sandvik brand, and the introduction of joint product offerings, will take place in 2008.” He would not be drawn to supply further details at this time, however.
Given the way that Sandvik has recently handled the rebranding of its past major acquisitions, such as Tamrock and Rammer, it would be reasonable to speculate that we will see an initial overlap period, with products from the two companies being branded as Sandvik Extec and Sandvik Fintec respectively, with existing model designations remaining the same. Under this scenario, new models launched next year would appear with a Sandvik designation. After the overlap period, machines from the combined companies would appear branded simply as Sandvik, with a Sandvik model designation.
A single management team for the crushing and screening business, including Sandvik's own large quarry crushers as well as Extec and Fintec, has already been put in place under managing director Kauko Juuri but the detailed integration will be done step-by-step. Mr Schulz said: “The most important aspect of the integration is the ongoing business, which in 2007 will see a combined turnover from Extec and Fintec of SEK2.3 billion (US$360), so we are not rushing the process ”