Svedala strengthens its after-market activities in Australia/Far East

Svedala strengthens its after-market activities in Australia/Far East Svedala Industri AB is continuing to focus on the after-market, through the acquisition of the remaining 50% of the shares in the Australian company Dunlop-Skega. This company was formed in 1996 and was formerly owned jointly (50-50) by Svedala and Dunlop. Dunlop-Skega has annual sales of approximately SEK 100 million, with some 75 employees. In addition to a sales and manufacturing unit in Perth, on the west coast of Australia, the company's operations comprise a small sales company in Singapore. Production, which largely focuses on linings for grinding mills, is conducted in new, modern plant premises. "The acquisition strengthens Svedala's organization for after-market products in Australia and the Far East," says Bengt Dehlén, division manager for Svedala Wear Resistance Products. "Having our own local production operations in this part of the world also enhances the degree of service we can offer the market, in the form of faster deliveries and being able to provide more extensive technological know-how in the field of grinding equipment and linings. Dunlop Skega will be integrated with Svedala's other operations. Equipment accounts for only a small part of Svedala's total business opportunities. Service agreements and wear and spare parts consumed on average by our machines during their economic lives are worth four times as much as sales of equipment. In parallel with new sales of products, the stock of equipment that requires maintenance is increasing, as is the potential market for Svedala. The after-market, that is sales of service, wear and spare parts, accounted for about 43% of Svedala's sales in 1998 and is the fastest growing business area within the Group. This favorable trend has been made possible by efforts to build up and develop Svedala Houses, the Group's market organization. Svedala Houses are currently established in 48 countries and there are more than 200 local service units. Svedala Industri AB, Information Department Ulla Frithiof, Telephone +4640245847 Svedala is a world-leading supplier of equipment and complete systems to the construction and mineral-processing industries. Through global coverage combined with local presence and a conscientious focus on providing service close to the customer, Svedala has become an important partner to industry. Today, the after-market accounts for nearly 45 percent of the Group´s sales of about SEK 15 billion. With some fifty Svedala Houses in 50 countries and nearly 200 local Svedala Service Houses, Svedala has established a unique position on the market. Currently, markets outside Sweden account for approximately 95 percent of sales and the Group has slightly more than 11,000 employees. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/07/02/19990702BIT00470/bit0001.doc

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