Sandvik has inked a deal with coal miner Alpha Metallurgical Resources to establish local manufacturing for its ground support business in the U.S. market.
Additionally, the supplier said, it will also establish a long-term exclusive supply deal with Alpha.
Sandvik will hold a 51% stake in the JV, and Alpha will hold the remaining 49%.
Production is planned at a new 100,000-square-foot facility in West Virginia, primarily focused on rock bolt and resin capsule manufacturing. There is potential to expand the product offering over time.
In addition to the long-term supply agreement with Alpha, the joint venture will also support sales to third-party customers.
“Re-entering the U.S. ground support market with a local manufacturing presence is strategically important, and this initiative will allow our Ground Support business to strengthen customer relationships, shorten lead times and build a scalable platform for long-term growth in North America,” said Mats Eriksson, President, Sandvik Mining.
“Creating this joint venture with Sandvik is a step in securing our supply chain by manufacturing more of our mining materials here in Central Appalachia,” said Andy Eidson, chief executive officer, Alpha Metallurgical Resources. “We are excited about the expected benefit to Alpha and, more broadly, to West Virginia.”
Source: Sandvik Mining