Sandvik on the Asian market

"Sandvik enjoys a long history in many important Asian markets, with deeper market knowledge than most of its competitors. The company has been quick to pick up signals from local markets and adapt its offering accordingly,” says Frédéric Cho, independent advisor and Vice Chairman of the Sweden-China Trade Council.

Challenges for international companies in Asia

The challenge in the Asian markets for all international companies is to establish a presence that reflects the economic stage the country is in, Cho adds. “An overriding strategy for Asia needs to be complemented with individual strategies for each country.”

The Asia strategy of Sandvik is, for example, reflected in the formation of a new China division based on the recent acquisition of a leading tool maker. While Sandvik has been supplying some Asian markets since the 1800s – for example with steel to the Japanese shipping industry – there is still room to grow.

Asia’s economic influence

In 2023, Asia’s share of global Gross Domestic Product (GDP) was around 50 percent, but the region accounts for only 17 percent of Sandvik Group turnover. China is the single most important market for Sandvik in Asia, both with regards to mining equipment and machining solutions. China’s mining industry includes over 1,500 major mining operations, with a total value of over USD 400 billion and the country spends approximately USD 200 billion a year on mine supplies and services, according to a report from the Canadian Trade Commissioner.

China’s lead in rare earth minerals

The country is the world’s leading producer, often by a large margin, of more than 20 metals, including the rare earth minerals crucial to the electrification of society. The U.S. Geological Survey estimates that China has accounted for 40-50 percent of global demand for minerals over the past three decades. Approximately 75 percent of all major Chinese mining operations are underground and as a world leader in underground equipment, Sandvik has reaped the fruits of the mining boom, according to Yao Jing, Vice President Sales Area China at Sandvik Mining and Rock Solutions.

We have managed to grow over double-digit numbers year over year for the past decade.

"The order intake looks good and this year we hope to reach record high revenues and further increase our market share.”

In addition to setting up the China division, Sandvik Machining Solutions is expanding its reach in other parts of Asia. The mid-market presence in India is being enhanced with strong production capabilities, including powder supply, while local production capabilities are being established in Japan.