Sandvik will have the majority share in the JV, which is for the production and sales of surface and underground mining equipment, targeting mid-market customers.
The JV will be established following customary regulatory approvals. It is planned to be operational in the second half of 2016 and will be a part of the new business area Sandvik Mining and Rock Technology.
The JV will focus on sourcing, assembly, sales and service of surface drills, underground loaders and underground trucks. The products will be designed for the specific needs of mid-market customers and will be sold under an independent brand. While the initial focus will be to supply the products for the Chinese market, the goal of the JV will also be to become the leading mid-market mining equipment supplier for other selected parts of the world.
Lars Engström, president at Sandvik Mining, said: “This joint venture agreement is in line with Sandvik’s strategy to develop a strong foothold in the fast expanding mid-market for mining equipment. I am very excited to make this important move to expand Sandvik’s mid-market offering with an experienced industrial partner like Lingong.”