The agreement is worth SEK 335 million, and SEK 70 million will be aimed at new business development.
As part of the new agreement, SKF will handle Sandvik Mining and Construction's inventories of SKF products, which will enable Sandvik to reduce cost of capital. The companies plan to form a new global logistic model, delivering reduced stock-keeping, fixed lead times, high availability and an automated electronic order processing solution.
SKF will also work with Sandvik Mining and Construction on cost-reduction projects and in the development of Sandvik products related to mining, mineral and construction equipment, including bearings and units, seals, mechatronics, services and lubrication systems.
Sandvik Mining and Construction has awarded SKF several contracts worth around SEK 70 million, involving SKF spherical roller bearings that will be used in Sandvik's screens, feeders and crushers.
“We are very happy to extend this partnership with Sandvik Mining and Construction,” said Henrik Lange, President of SKF’s Industrial Division. “Our companies have similar company cultures, are present in all key markets and have a long history together both in supply, research and development.”