Swedish mining equipment manufacturer Atlas Copco has announced plans to relocate the operations of one of its mining equipment production facilities within China.
The company’s latest move to relocate operations from Shenyang to Zhangjiakou will result in 225 job cuts.
Atlas Copco’s Shenyang facility primarily manufactures hand-held rock drills for mining and construction, while the Zhangjiakou facility produces down-the-hole equipment to drill blast holes, water wells and geothermal energy applications.
In this facility, the company plans to add 45 employees and invest in expansion and new machinery.
Atlas Copco mining and rock excavation technique business area president Johan Halling said: “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.
“Consolidating the operations will help us stay strong for the future. We will support the affected employees in this difficult situation.”
Both facilities primarily serve the domestic Chinese market.
Atlas Copco’s mining and rock excavation technique division provides equipment for drilling and rock excavation.
The business is engaged in surface and underground mining, infrastructure, civil works, well drilling and geotechnical applications.
Image: Atlas Copco’s hand-held rock drill. Photo: courtesy of Atlas Copco.