Sandvik will maintain ownership of ongoing projects which are close to finalization, with the closing of the transaction is expected during the fourth quarter of 2016.

Mining Systems is a supplier of design and engineering of material handling systems for the mining industry.

In 2015 the Mining Systems operations, with 1,100 employees, had annual sales of 5 billion Swedish Krone representing 6% of Sandvik Group revenues, and an operating loss was reported at a low single digit margin level.

Sandvik president and CEO Bjorn Rosengren said: “Divesting the Mining Systems is an important step in consolidating Sandvik to its core operations, which for Sandvik Mining and Rock Technology is high technology mining equipment and aftermarket offerings.”