Atlas Copco has announced that it is reducing capacity at its facility in Örebro, Sweden, with the loss of 163 jobs. The move comes in response to weak global demand for mining equipment, said the company in a statement.
Mining equipment market remains weak
“The market for mining equipment continues to be weak, and we have to adjust capacity accordingly,” said Johan Halling, president of the Mining and Rock Excavation Technique business area. “It’s very unfortunate that some employees are directly affected, but we will do our best to support them in this difficult situation”.
More than 1700 people currently work at the Örebro site, which manufactures equipment used in mines and quarries, as well as for construction.
Low commodity prices hit CAPEX
The mining industry has been hit by low commodity prices, causing the major mining companies to cut back on CAPEX spending. Joy Global recently announced a 36% slide in quarterly earnings and warned the 2014 could be worse.
Atlas Copco’s Mining and Rock Excavation Technique business area provides equipment for drilling and rock excavation, a complete range of related consumables and service through a global network.
Adapted from press release by Jonathan Rowland