Atlas Copco 2008 – tough ending to a record year Annual Report ...

administration reportThe Construction and Mining Techniquebusiness area consists of eightdivisions in the following product areas:drilling rigs, rock drilling tools, loadingequipment, exploration equipment,construction tools, and road constructionequipment.Business area managementOn February 2, 2009Business Area President:Björn RosengrenBjörn Rosengren Patrik Nolåker Andreas Malmberg Robert FasslConstruction and Mining Technique’sdivisions are:• Underground Rock Excavation,President Patrik Nolåker• Surface Drilling Equipment,President Andreas Malmberg• Drilling Solutions,President Robert Fassl• Road Construction Equipment,President Claes Ahrengart• Secoroc, President Johan HallingClaes Ahrengart Johan Halling Henk Brouwer Peter Salditt Roger Sandström• Construction Tools, President Henk Brouwer• Geotechnical Drilling and Exploration,President Peter Salditt• Rocktec, President Roger SandströmNew consumables and aftermarket products were also brought tomarket during the year. A new service package introduced for surfacedrilling crawlers includes a satellite navigation system enablingcustomers to locate the crawler. The service package also includesan extended warranty. The assortment of drilling consumables wasexpanded with a number of drill bits of various categories andsizes.The operationsThe Construction and Mining Technique business area develops,manufactures, markets and services rock drilling tools, undergroundrock drilling rigs for tunneling and mining applications,surface drilling rigs, loading equipment, exploration drillingequipment, construction tools and road construction equipment.The business area has its principal product development and manufacturingunits in Sweden, Germany, and the United States, butalso other units in Australia, Austria, Brazil, Bulgaria, Canada,Chile, China, Finland, India, Japan, and South Africa.Vision and strategyThe vision is to be First in Mind—First in Choice® as supplier ofequipment and aftermarket services for rock excavation, roaddevelopment, and demolition applications to the mining and constructionindustries.The strategy is to grow by maintaining and reinforcing itsleading market position as a global supplier for the mining andconstruction industries; by developing its positions in drilling andloading equipment, exploration drilling, light construction, androad construction equipment; and by increasing revenues byoffering more aftermarket products and services to customers.Strategic activities• Increase market coverage and invest in people in sales, service andsupport, with special attention given to focused growth markets• Invest in production capacity in strategic growth markets such asChina and India to meet local demand• Develop new products and solutions offering enhanced productivityand safety, while limiting environmental impact• Extend the product offering based on modular design and computerizedcontrol systems• Develop the global service concept/competence and extend theoffering of aftermarket products• Provide increased support to key customers, take more responsibilityfor service and aftermarket, and offer global contracts• Acquire complementary businessesThe marketThe total market for mining and construction equipment is verylarge and has a large number of market participants offering awide range of products and services for different applications. TheConstruction and Mining Technique business area, however,offers products and services only for selected applications withinthe mining and construction industries.The mining sector is a key customer segment that representedmore than half of annual business area revenues. The applicationsinclude production and development work for both undergroundand open pit mines as well as mineral exploration. These customersdemand rock drilling equipment, rock drilling tools, loadingand haulage equipment, and exploration drilling equipment.The other key customer segment is construction, accountingfor slightly less than half of annual revenues. General and civilengineering contractors, often involved in infrastructure projectslike road building, tunneling or dam construction, demand rock30 Atlas Copco 2008