Atlas Copco to increase manufacturing capacity for hydraulic breakers

July 17, 2006

Stockholm, Sweden, July 17, 2006: Atlas Copco will expand its production facilities for hydraulic breakers in Kalmar, Sweden, and in Essen, Germany. In parallel, the capacity of the plant in Rousse, Bulgaria will increase. The investment in the three plants has a value of close to MSEK 200.

“The demand for rig-mounted hydraulic breakers has increased during the last years, and to be able to meet the need we have decided to expand our production facilities,” says Björn Rosengren, Business Area President, Construction and Mining Technique.  “Three years ago we restructured our breaker production, concentrating the manufacturing of small breakers to Sweden, and medium and heavy breakers to Germany. This split has given us the opportunity to develop further both products and capacity utilization.”  Following the high demand for hydraulic breakers, the demand for working tools has also increased. To boost the manufacturing capacity of these, part of the investment is made in a new heat treatment facility in Germany.  The construction work will start during the third quarter of 2006 and continue over a two year period. The expansion will lead to new employment at all three plants. The production plants are part of the Construction Tools division within the Construction and Mining Technique business area. For further information please contact:  Björn Rosengren, Business Area President, Construction and Mining Technique  +46 (0)8 743 8314 or +46 (0)70 417 8502  Annika Berglund, Senior Vice President Corporate Communications  +46 (0)8 743 8070 or +46 (0)70 322 8070 Atlas Copco is a world leading provider of industrial productivity solutions.  The products and services range from compressed air and gas equipment, generators, construction and mining equipment, industrial tools and assembly systems, to related aftermarket and rental. In close cooperation with customers and business partners, and with more than 130 years of experience, Atlas Copco innovates for superior productivity. Headquartered in Stockholm, Sweden, the Group’s global reach spans more than 150 markets. In 2005, Atlas Copco had 27 000 employees and revenues of BSEK 53 (MEUR 5 600). Learn more at  Atlas Copco Construction Tools is a division within Atlas Copco’s Construction and Mining Technique business area. It develops, manufactures and markets hydraulic, pneumatic, and gasoline-powered breakers and drills, as well as pedestal boom systems worldwide under several brands. The division is headquartered in Stockholm, Sweden and has production units in Europe, Africa and Asia.