Global solutions for construction Atlas Copco

GLOBAL SOLUTIONS FOR CONSTRUCTION

Three years after it was established as a stand-alone operation, Atlas Copco’s Construction Technique business area is helping customers all over the world to improve their productivity.

IN 2011 the Atlas Copco Group decided to modify its business structure to strengthen its focus on specific product and customer segments. It restructured into four business areas in place of the previous three, creating a new dedicated business specifically for construction equipment and related services. The Swedish headquarted company’s divisions for portable compressors and generators, road construction equipment and construction tools were put together in what is now known as the Construction Technique business area.

Atlas Copco’s divisions for underground and surface drilling products as well as crushing, loading, hauling and exploration equipment, which were previously part of the Construction and Mining business, were given a distinct identity as the Mining and Rock Excavation Technique business area. The company’s Compressor Technique area was focused on stationary equipment for air and gas related services – industrial compressors, gas and process compressors, air and gas treatment equipment etc – while the Industrial Technique business continued to specialise in high quality industrial power tools and assembly systems for the automotive and aerospace industries as well as for general industry.

“With more focused business areas, each will have a strong platform from which they can develop the offering for their customers,” said Ronnie Leten, president and CEO of the group, at the time of the reorganisation. “The modified structure also allows us to better capture the sales and service synergies between our construction businesses and capitalise on the future growth of construction projects around the world, especially in emerging markets.”

In September 2014, Atlas Copco followed up on this reorganisation by appointing a new president of the Construction Technique business area. Andrew Walker had been in management roles at Atlas Copco since he joined the company in Ireland in 1986 and was president of the Service division of the Compressor Technique business before taking over the Construction Technique presidency. He is now a member of the Atlas Copco’s Group management and is currently based in Antwerp, Belgium.

Commenting of the new appointment in 2014, Ronnie Leten said, “Andrew is a leader with broad experience and a successful background in global and local management of both equipment and service business lines. This will be valuable in in his new mission to further develop the Construction Technique business area.”

Global reach, local service

Atlas Copco is a company with a global reach – its activities span more than 180 countries – and in 2014 it had more than 44,000 employees and revenues of SEK 94bn. Its Construction Technique business currently has 5780 employees and 2014 revenues of SEK 14.7bn. Construction Technique has product development and manufacturing units in Belgium, Germany, Sweden, the United States, China, India and Brazil. It supplies compaction and paving equipment to civil engineering contractors across the world as well as light construction tools such as breakers, cutters, drills and handheld compaction equipment to trade contractors and rental companies. Its portable compressors and generators are used to provide power in all kinds of construction applications.

“Atlas Copco is a very large global group but it is made up of an assortment of mid-sized businesses in many different countries,” explains a company spokesman. “The new structure that we established three years ago has helped us to combine product families so we can present customers with a greater and more integrated service and at the same time have fewer people facing those customers. So our service is now even more productive, more efficient and more distinct from that of our competitors. But it hasn’t at all reduced our ability to offer local services, through our many component businesses; we deliver global solutions but we will still leave it to local managers to decide what suits their markets best.”

Continuous expansion

Atlas Copco is also continuing its acquisitions strategy, looking for mid-sized, locally-based companies that will help it to strengthen its local presence all over the world. Four years ago the group acquired the Spanish generator manufacturer Gesan. Based in Zaragoza, Gesan supplies generators to more than 85 countries and Europe, Russia and

Africa are its most important markets. The Gesan business is now operating within the Portable Energy division of Construction Technique.

The latest addition to the business of Construction Technique has been this year’s acquisition of Mustang Services, a US speciality dryer rental business that serves industries such as refineries, petrochemical plants and general manufacturing. Mustang Services is based in Mesquite, Texas, and was part of privately owned Mustang Transportation Co..

Mustang Services rents out its equipment, mainly adsorption type air dryers, to industrial end-users that require dry compressed air in their processes, as well as to other rental companies. The products are often rented together with air compressors to provide customers with a total rental solution.

“This acquisition fits well with our strategy as it expands our offering in North America, the biggest market for rental of dryers,” said Andrew Walker. “It enhances our customers’ access to our products and services.”

“We will continuously review potential acquisitions to add new technologies,” says Ronnie Leten, “but it is even more important that we remain focused on product development and innovation. In fact, innovation is in our DNA and we are committed to offering breakthrough solutions that help customers become more productive.” In fact, Atlas Copco has been named in a Forbes magazine list as one of the world’s 100 most innovative companies and it continues to develop products that deliver higher productivity, smarter ergonomics, enhanced safety and improved energy efficiency.

Growth potential

Atlas Copco continues to develop markets all over the world but it sees the greatest current potential for growth in China and the USA. At the beginning of 2011 it announced an investment of SEK 60m in a new research and development centre in Nanjing, China. The new centre is providing customers within the Chinese mining and construction industries with specialist engineering services, laboratories and testing facilities.

In 2015 Atlas Copco reported a record operating profit, with continuing growth particularly in its service business. “In spite of a generally low level of capital investment acroos the world, we have seen good demand for industrial tools, assembly systems, vacuum solutions and small and medium sized compressors,” says Ronnie Leten. “Our service business is going from strength to strength and we are focusing on creating value for customers while keeping a close eye on efficiency.” n

Rochester Gauges

Partner of Atlas Copco for 30 years, Rochester Gauges manufactures liquid level indicators, equipped with direct reading dial or electrical outputs, for all kind of liquids and applications (up to 40 bar pressure). Actual product range covers Construction, Military, Agriculture, Automotive and Industrial sectors. Custom designed as per application and customer’s requirements. Serving the global market with three factories (Belgium, USA, Mexico), Rochester offers tank gauging solutions to OEM’s since 1913. Rochester also provides sensors and receivers for telemetry or automated applications, offering remote reading, alarms, continuous read-out or output relays. Market leader in the LP-Gas industry, Rochester Gauges offers products on the highest quality standards, proven over the years, being the reference in this sector. Even copied, never equaled!