Sandvik Mining and Construction has signed an agreement with Shandong Energy Machinery of China to form a 50/50 owned joint venture (JV) for the production and sales of coal mining equipment.

The JV will focus on sourcing, assembly, sales and service of roadheaders for the coal mining market of China.

Under the JV, Sandvik will provide the knowledge of the product know-how and technology while Shandong Energy Machinery will contribute with local sourcing skills and customer application knowledge.

The products will include premium Sandvik roadheaders, which will be sold under the Sandvik brand.

The JV is expected to be operational by end of 2011 and will be fully consolidated in the Sandvik reporting.