Sandvik to set up production plant in Malaysia for EV mining trucks; equipment production to start Q4 2023

In Local News / By Mick Chan / 13 March 2023 2:33 pm / 12 comments

Swedish engineering group Sandvik is establishing a new production site in Malaysia for the manufacture of underground loaders and trucks in its effort to meet demand for battery-electric vehicles in the mining industry, the company has announced in a statement.

Production of equipment is planned for commencement in the fourth quarter of 2023 following upgrades to its factory as well as other site improvements, and the investment for this exercise is expected to total SEK 350 million (RM148 million) over the coming three years, it said.

According to International Mining, the facility is located in the Sendayan TechValley business park in Sendayan, Negeri Sembilan, and the new factory will span more than 8,000 sq m and include 15 versatile assembly bays. This will support the manufacture of all Sandvik load and haul equipment models and is independent of existing supplier chains, the website quoted Sandvik as saying.

The new facility will primarily focus on battery-electric vehicles for mining applications, however the plant will also manufacture conventional loaders and trucks, as well as battery cages, the company said in its statement.

"Malaysia is among the most technologically developed countries in Southeast Asia and has abundant skilled labour, strong local industrial suppliers and reliable infrastructure. Our mining customers in Asia Pacific will enjoy shorter lead times for equipment manufactured to the same Sandvik standards for quality and safety," said Sandvik president Mats Eriksson.

"Demand of our loaders and trucks is exceeding our current production capacity at our existing factories. The establishment of our new production unit in Malaysia will enable flexible manufacturing of both conventional diesel and battery-electric mining equipment," said Sandvik load and haul division president Patricio Apablaza.

On the passenger vehicle front, Sendayan is also home to the Daihatsu Perodua Engine Manufacturing plant, which was officially opened in November 2016. This is adjacent to the Akashi Kikai transmission plant that was officially opened in June 2015.