Strategy and growth
Shift to growth
We plan to grow organically by expanding our aftermarket offerings through the life cycle of our equipment to capture a larger portion of that market. Our technology leadership, connectivity and the digitalization of our equipment will help us achieve that. Our ambition is to increase our capture rate of the aftermarket by 30 percent in 2025 compared to 2019.
Acquisitions are crucial as we shift to growth. In 2021, Sandvik acquired the South African-based Kwatani, a supplier of screens and feeders for the mining industry. This acquisition will strengthen our capabilities in the comminution process and further accelerate our growth within rock processing by increasing our equipment range and complementing the existing aftermarket product and services portfolio. It will also expand the Group’s presence in Africa. For more than 10 years, Sandvik has been the majority owner in Shanbao, a provider of crushing and screening solutions to the Chinese market. In November, Sandvik acquired the remaining 20 percent of the shares and became the full owner of the company.
Today, most of our customers are in mature markets within developed countries. We will continue to focus on complementary acquisitions and partnerships that help us expand our geographical footprint, as well as extend our capabilities, particularly related to sustainable customer solutions for improvements in water and energy efficiency.
Digitalization is helping our customers gain operational insights to improve their productivity and performance. Through connected equipment we are better able to predict the remaining useful lifetime of products or plan customers’ maintenance more accurately and efficiently. Our goal is for 60 percent of our customers to be utilizing our automated and digital solutions by 2025.
In 2021 we introduced SAM™ by Sandvik, our new rock processing digital service. The service drives collaboration, connectivity and productivity across customer operations. It provides customers with direct access to data analytics, communications, e-commerce, inspection tools, custom on-site reporting, information and predictions based on our artificial intelligence modeling for connected equipment. The service was designed using customer personas and was tested at customer sites to ensure ease of use for their operators. The modularity of the platform and focus on usability are some of the features that give Sandvik an edge over the competition.