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The Atlas Copco board is proposing a split of the Group, which will turn the mining and rock excavation technique and construction tools division into a separate company.

The new company will serve customers within mining and civil engineering.

The mining and civil engineering company will include 12 000 employees, comprising all divisions within the mining and rock excavation technique business area plus the construction tools division and related services.

The rationale is to ensure that both Atlas Copco and the new company are provided with the best growth opportunities in their respective market segments.

The new company will have a dedicated board and CEO; this will result in more agile company governance and faster response to market requirements. There will not be any operational changes to the existing structure, as a solid organisation is already in place. This structure will further enable investments in growth areas like automation, digitisation and service excellence.

“This is a fantastic opportunity. With the new company solely dedicated to mining and civil engineering we can serve our customers even better,” says Helena Hedblom, business area president of mining and rock excavation technique.

“From an organisational point of view there will be no changes. We have strong customer centres, professional people, excellent products and superior services. Our customer support will be reinforced as we can run operations in a  more focused way from our present premises.”

The new company will be listed on the Nasdaq Stockholm stock exchange from mid 2018, following approval at the Atlas Copco annual general meeting in April 2018.

Atlas Copco’s mining and rock excavation technique business area provides equipment for drilling and rock excavation, and a complete range of related consumables and services through a global network.

The business area innovates for sustainable productivity in surface and underground mining, infrastructure, civil works, well drilling and geotechnical applications. Its principal product development and manufacturing units are located in Sweden, the United States, Canada, China and India.