SKF has signed a three-year strategic partnership agreement with Sandvik Mining and Construction, thereby strengthening the relationship between the two companies. With SKF's proven capabilities and knowledge in working with major manufacturing industry, Sandvik will hand over inventory responsibilities for SKF's bearing and seal product range and take advantage of SKF's technical expertise in product development. The agreement enables Sandvik to focus on its core activities, while improvements in efficiency in all aspects of stock management will reduce capital costs, and product development will deliver increases in output, performance and reliability.
The agreement is worth £33million, of which £7million is aimed at new business. SKF will handle Sandvik Mining and Construction's inventories of SKF products, which will enable Sandvik to reduce the cost of capital and be more responsive to its customers' needs. The key area in the partnership is a new global logistic model, delivering reduced stock-keeping, fixed lead times, high availability and an automated electronic order processing solution.
In addition, SKF will co-operate with Sandvik Mining and Construction on defined cost-reduction projects and in the development of key Sandvik Mining and Construction products, involving SKF's five platforms: bearings and units, seals, mechatronics, services and lubrication systems. The agreement concerns all Sandvik Mining and Construction's products related to mining, mineral and construction equipment, with the benefits being increased performance of machine reliability, output and safety.
Sandvik Mining and Construction has also awarded SKF several contracts worth around £7million, involving SKF spherical roller bearings that will be used in Sandvik's screens, feeders and crushers.
Henrik Lange, President at SKF Industrial Division, comments: "We are extremely happy to extend this partnership with Sandvik Mining and Construction. Our companies have similar corporate cultures, are present in all key markets and have a long history together both in supply, research and development".
Lars Josefsson, President at Sandvik Mining and Construction, adds: "We were looking for a partner to work with global supply that could support us in our high growth ambitions, especially in China, India and Brazil".
The SKF plants manufacturing the parts according to the agreement are situated in Sweden, Germany, UK, China, India, USA, France and Malaysia.