The company said the move will increase efficiency and strengthen the company for the future.

Atlas Copco will close its facility in Shenyang, which manufactures mainly hand-held rock drills for mining and construction, relocating operations to the plant in Zhangjiakou. In Shenyang, about 225 people will be affected.

In Zhangjiakou, Atlas Copco currently produces down-the-hole equipment used to drill blastholes, water wells and geothermal energy applications. In this location, about 45 employees will be added and investments made in a facility expansion and new machinery.

“We have a great product portfolio in China, but with the weak demand in the mining market we must ensure that we utilise our capacity the most efficient way,” said Johan Halling, president for the Mining and Rock Excavation Technique business area.

“Consolidating the operations will help us stay strong for the future. We will support the affected employees in this difficult situation.”

Both operations primarily serve the domestic Chinese market.