Atlas Copco has taken a decision to divest its concrete and compaction business to Husqvarna Group’s Construction division. The planned divestment will enable Atlas Copco’s Power Technique business area to intensify focus on its core technologies of air, power and flow.

Atlas Copco Power Technique, which recently evolved out of the success of the Construction Technique business area, brings complete air (portable compressors), power (generators and light towers) and flow (pumps) solutions and services to mining and industry.

In addition to the complete concrete and compaction product ranges including plate compactors, tandem rollers and concrete vibrators, the production facility in Ruse, Bulgaria, as well as production assets in Nashik, India, along with sales and service operations worldwide are included in the divestment transaction.

“This development will now enable us to create focus within our business area to further accelerate growth in our core technologies of air, power and flow,” comments Philip Herselman, General Manager, Power Technique, Atlas Copco Industrial South Africa.

“With this development it is important to know that Atlas Copco remains committed to our channel partners. We will work hand-in-hand with Husqvarna to ensure a smooth transition and continuity in supply and support, albeit under a new brand and working with a new organisation. In essence, it will be business as usual.”

Herselman says that in terms of their remaining product offering and strategy referenced to earlier, Portable Energy will now be evolved into two divisions to bring more focus. “This process is ongoing now and this move will enable our Power Technique business area to accelerate research and development within its newly formed Portable Air and Power and Flow divisions.”

“Our commitment to the construction industry, along with many others served, remains as strong as ever. We now have a more streamlined product portfolio through which we can more deeply focus our resources to add real innovation and differentiation,” concludes Herselman.

The concrete and compaction business had revenues of approximately MEUR 57 (MSEK 570) in 2016. Approximately 200 employees will join Husqvarna Group. Subject to regulatory approvals, the divestment is expected to be completed during Q1 2018.