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Atlas Copco to strengthen its mining rock excavation business

October 10, 2002

Stockholm, Sweden, October 10, 2002 - Atlas Copco has decided to integrate its drill rig and loader/truck businesses into one dedicated division. By transferring the production of loaders and mining trucks from Atlas Copco Wagner, Portland, USA, to the Rock Excavation Technology Center in Örebro, Sweden, substantial synergies will be achieved in product development, manufacturing, purchasing, logistics, and administration.

The transfer, which affects 215 employees in the Portland plant, will be done during 2003 and involves a restructuring cost of MSEK 150. The main part, approximately MSEK 100, will be charged to the fourth quarter 2002.  This move will give opportunities to strengthen the competitive position significantly, as well as the ability to offer integrated products and service solutions to the global underground mining industry. ”We will make substantial investments within the areas of design and engineering. By concentrating all resources to our dynamic product development center in Örebro, we can easier respond to future customer demands related to the entire rock excavation cycle,” says Björn Rosengren, Senior Executive Vice President Business Area Construction and Mining Technique.  The division Atlas Copco Rock Drilling Equipment’s manufacturing unit in Örebro, Sweden, currently employs 685 people. As a result of the integration with Atlas Copco Wagner, up to 150 new job opportunities will be created. CONTACT:  Björn Rosengren, Senior Executive Vice President, Atlas Copco AB, + 46 70 417 8502, [email protected]  Annika Berglund, Senior Vice President, Group Communications, +46 8 743 8070, or +46 70 322 8070, [email protected]  Download a photo from our photo archive on Internet, www.atlascopco-group.com. Click on Construction & Mining Technique. Enter a specific photo number. Enter “Find”, and follow the instructions beneath the thumbnail pictures. Picture no: 203540 “Atlas Copco designs, develops and manufactures around 30 different models of underground Load-Haul- and Dump Vehicles (LHD's) and Mine Trucks.” Picture no: 201923 “Atlas Copco Rocket boomer is used for drilling in underground mines.”  Atlas Copco Rock Drilling Equipment develops, manufactures and markets rock drills, drill rigs, and equipment for rock reinforcement, and has established a world leading position. The products are used for rock excavation within the mining and construction business, for both surface and underground applications. The division’s headquarters, the Rock Excavation Technology Center and main production plants are located in Örebro, Sweden.  Atlas Copco Wagner Inc. is based in Portland, Oregon, USA. Atlas Copco Wagner Inc. is a worldwide supplier of four-wheel drive diesel and electric-powered articulated underground mining and construction vehicles, including Scooptrams and mine trucks. The company manufactures more than 30 different types of standard LHDs and trucks.  Atlas Copco is an international industrial Group with its head office in Stockholm, Sweden. In 2001, the Group had revenues of SEK 51 billion (EUR 5.4 billion), with 98% of revenues outside Sweden, and close to 26,000 employees. The Group produces and markets compressed air equipment and generators, construction and mining equipment, electric and pneumatic tools, and assembly systems and offers related service and equipment rental. The Atlas Copco Group includes famous brands such as Atlas Copco, RSC, Milwaukee Electric Tool, Chicago Pneumatic, and AEG Power Tools. More information can be found on the web site: www.atlascopco-group.com