Epiroc to move production to China

Following the planned closure and subsequent sale of its production facility in Japan, Epiroc has announced that it will relocate the production and development of drill rigs for surface construction to China.

The relocation will see the Japanese facility close by 2023. (Photo: Epiroc)

The production and development will now be based in Nanjing, China.

The company claim that, as a result of the relocation, manufacturing will “benefit from larger-scale production, sourcing, and logistics infrastructure, which will increase efficiency.”

Although the sale of the Yokohama production facility has already been finalised, it will not close operations until mid-2023, when Epiroc’s customer center will be relocated elsewhere in the Yokohama area.

The company will keep their customer center in the area so it can support customers in Japan with “product and application know-how as well as to provide overhauls, rebuilds, and upgrades of their existing fleets.”

Helena Hedblom, Epiroc’s President and CEO, said, “We continuously strive to increase operational excellence, and this move will improve our long-term competitiveness and agility.

“Our facility in Nanjing provides clear benefits with its significant infrastructure for production, sourcing, and logistics. We are saddened that this will affect some of our colleagues in Japan.”

Epiroc has also confirmed that the net effect on operating profit from the sale of the property and the restructuring cost will be positive with approximately MSEK 250. It will be reported in its financial results in the second quarter of 2022.