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Sandvik to open new load and haul factory in Malaysia

Sandvik is establishing a new production unit in Malaysia for manufacturing underground loaders and trucks. Equipment production is planned to begin in Q4 2023 following factory upgrades and other site improvements.

The expansion will help Sandvik Mining and Rock Solutions answer growing demand for its battery-electric vehicles (BEVs). While the new production unit’s primary focus will be BEVs, it will also manufacture conventional loaders and trucks as well as battery cages. Annual manufacturing capacity is planned to increase gradually to 300 loaders and trucks and 500 battery cages by 2030.

The new facility in the 445-hectare Sendayan TechValley business park is located 70 kilometers south of Malaysian capital Kuala Lumpur and 15 kilometers west of state capital Seremban. The factory is 90 kilometers southeast of Port Klang, Malaysia’s largest seaport and one of the busiest container terminals in the world.

“Malaysia is among the most technologically developed countries in Southeast Asia and has abundant skilled labor, strong local industrial suppliers and reliable infrastructure,” said Mats Eriksson, President of Sandvik Mining and Rock Solutions. “Our mining customers in Asia Pacific will enjoy shorter lead times for equipment manufactured to the same Sandvik standards for quality and safety.”

The new factory will span more than 8,000 meters and include 15 versatile assembly bays. It will support the manufacture of all Sandvik load and haul equipment models and is independent of existing supplier chains. Production ramp-up will begin later this year with Toro™ LH517i loaders followed by Toro™ LH518iB, Sandvik’s newly-announced automation-ready battery-electric loader, in Q2 2024.

“Demand for our loaders and trucks is exceeding our current production capacity at our existing factories,” said Patricio Apablaza, President of Sandvik Mining and Rock Solutions’ Load and Haul division. “The establishment of our new production unit in Malaysia will enable flexible manufacturing of both conventional diesel and battery-electric mining equipment.”

Seremban, Malaysia, March 10, 2023

For more information, please contact:
VO Kataja
Project Manager
Sandvik Mining and Rock Solutions
Email: vo.kataja@sandvik.com

Sandvik Group
Sandvik is a global, high-tech engineering group providing solutions that enhance productivity, profitability and sustainability for the manufacturing, mining and infrastructure industries. We are at the forefront of digitalization and focus on optimizing our customers’ processes. Our world-leading offering includes equipment, tools, services and digital solutions for machining, mining, rock excavation and rock processing. In 2022 the Group had approximately 40,000 employees and revenues of about 112 billion SEK in about 150 countries within continuing operations.

Sandvik Mining and Rock Solutions
Sandvik Mining and Rock Solutions is a business area within the Sandvik Group and a global leading supplier of equipment and tools, parts, service, digital solutions and sustainability-driving technologies for the mining and construction industries. Application areas include rock drilling, rock cutting, loading and hauling, tunneling and quarrying. In 2022, sales were approximately 57 billion SEK with about 16,200 employees.