Why Finland sits at the core of Sandvik’s global mining leadership

Despite a significant share of the world’s underground mining equipment being designed and built in Finland, the scale of the country’s contribution to the global mining business has largely remained out of public view.

Sandvik in Finland alone employs around 2,700 people locally, while its subcontracting network supports an additional 2,500 jobs. Combined, this activity generates approximately €1.5 billion in exports each year. “The country is among the best in the world in underground mining,” says Mats Eriksson, President of Sandvik Mining. “And that is not widely recognized.”

The operational base of the mining business

Sandvik, a Swedish company, operates across all major mining regions, but much of the mining business is run from Finland. “Four of my nine divisions are based here,” Eriksson says. “This is where a large share of the work happens.”

These divisions design and manufacture underground loaders, trucks, and drill rigs. They also develop the control systems that operate the equipment underground. Sandvik delivers full mine setup solutions that combine equipment, control software, operating logic, and system integration for optimized autonomous operation.

The competitive advantage comes from several elements working together:

• A large pool of engineers with mining experience
• Long-standing cooperation with universities
• Specialized small suppliers focused on narrow technical areas
• Public agencies that support industrial research
• Sites where design and manufacturing are co-located

Keeping engineers and production teams in proximity has practical value. “When designs change, manufacturing limits are clear immediately,” Eriksson says. “Problems surface early, not after equipment reaches a mine.”

Why the work stays where it is

Sandvik’s position in mining was not built quickly, nor was it built everywhere. “The core of this business comes from Finland,” Eriksson says. “You can’t replace decades of know-how.”

That expertise reflects a long-term accumulation of practical understanding: how mines operate, how equipment performs under extreme conditions, and how systems evolve as mines expand and change over time.

“You don’t learn this in a classroom,” Eriksson explains. “You need to understand the customer’s problems to build the right solutions.”

Over time, that knowledge has been embedded across Finland’s industrial base – within Sandvik, its supplier network, and its research partners. The result is an ecosystem where R&D, production, and application expertise reinforce each other.

This accumulated advantage helps explain why the country remains central to Sandvik’s global operations, even as the company expands internationally. New facilities in other regions continue to rely on expertise from Finland to transfer knowledge, define standards, and guide implementation.

Recognition after decades of investment

In 2025, Sandvik received the President of Finland’s Internationalization Award in the long-term investor category. For Eriksson, the recognition mattered most to employees. “It acknowledges decades of work,” he says.

Sandvik’s presence in Finland includes:

• More than €170 million invested in recent years
• Ongoing production expansion in Tampere and Turku
• Around 95% of local output is shipped abroad as exports

The recognition also reflects how deeply Sandvik is embedded in the local economy. Beyond export volumes and capital investment, the company operates within a broader industrial and innovation ecosystem, working closely with cities, universities, suppliers, and public organizations.

Business Finland and development speed

Maintaining leadership is closely linked to the country’s innovation system, particularly Business Finland. “We know what we need to develop,” Eriksson says. “What matters is how fast we can do it.”

Business Finland contributes in two ways:

• R&D funding, which allows Sandvik to expand engineering capacity beyond what it could support alone
• Ecosystem coordination, connecting Sandvik with partners, startups, universities, and specialized suppliers

“It’s about speed,” Eriksson emphasizes. “Without this support, development would slow down. In our industry, that means losing market position.”

In practice, the impact is both direct and structural. Funding makes it possible to involve more engineers and external specialists, particularly in areas such as software, electrification, and AI, where competition for talent is high. 

At the same time, programs such as Business Finland’s Leading Company (Veturi) initiative help integrate capabilities from outside Sandvik’s own organization. “You don’t need to reinvent the wheel,” Eriksson says. “You need to find what already exists and make it work as part of your solution.”

The role ahead

Sandvik plans to expand production closer to customers in some regions to shorten delivery times. Even so, Finland will remain the main base for underground mining development. “We will continue to grow here,” Eriksson says. “Our mining business depends on what we have built."

Competition is increasing, particularly in battery systems and automated operations. Holding the leading position will require continued investment in research, recruitment, and cooperation with partners. "The foundation here is strong," Eriksson says. "The work now is to keep it strong."