HIGH PROFILE
Epiroc – accelerating the transformation
The Epiroc World Expo 2023 was a unique opportunity to get an up to date insight into the innovations being applied across the OEM ’ s product lines , systems and technologies
one or a few key sites . I like to say that for any new technology we tend to ‘ nail it ’ with one or two major customers before we are able to ‘ scale it ’ globally , all the time maintaining the structured methodology that allows it to be implemented in the most efficient way . I also think a big part of our success over the last five years is a more agile way of working when it comes to our product development and solving problems fast with the teams on the ground . We have three week intensive ‘ sprints ’ as an example . And increasingly this applies to software development , where this agile way of working has been the norm for many years now .
During the Epiroc World Expo 2023 , IM Editorial Director Paul Moore had the chance to sit down in person with President and CEO Helena Hedblom to talk through strengths and challenges as the industry begins arguably its most significant transition to date
Q You talk a lot to your major customers about their roadmaps – with clear emission reduction targets now having been set , is the mining industry becoming more collaborative and forward thinking and TCO focussed in terms of its relationship with key suppliers ? A Very much so – I think our business has for some time moved away from being transactional to being more of a partnership , and this has just accelerated with the major technology trends . As to implement things like automation , digitalisation and electrification involves a lot of change on both sides from the skills needed by technicians and the competences needed to manage the technologies on a mine scale . It is all bringing us even closer to our customers and everything is also much more project-based – committing to automation for example takes at least a couple of years for a major implementation .
We work very structurally with the customer as they embark on that journey . In the past if we developed a new technology , we could sell it to the customer and they could use it and benefit from it themselves – today we need to work together because we are taking bigger steps . Operators need to trust the new technology and rely on it first and foremost – and that ’ s where change management comes in , in both processes and ways of working .
Q Are there any elements of your approach to implementing new technologies you would highlight as being key to success ?
A I would first say that we do it in a very coordinated way with our largest manufacturing and R & D hub here in Örebro closely supporting the teams in our customer centers in the mining regions . We also make sure we get it right first at
Q It is almost exactly five years since Epiroc was spun off from Atlas Copco and in that time you have outperformed the general stock market by a factor of two . What would you say is the most significant factor driving this ? A To be a leader in technology you have to push the boundaries and I think we have done that and continue to do that . By that I mean leading in the technology shifts that are helping to shape the mining industry ’ s future . We also continue to grow the aftermarket which we have kept at about twothirds of our business even as Epiroc has grown , and this has really helped us become a very resilient company in both margins and profit . We know our fleet on a very detailed level and how much we are selling in relation to every single machine and how much they are consuming . Also in the past we were mainly selling parts and hours in the aftermarket – today we like to say we are selling service offerings and products – anything from major upgrades to midlife services and even battery conversion . So we are selling the value rather than just the parts . This is highly appreciated by customers and also brings us closer to them . They know that they can rely on us and that if they opt for a rebuild , they know we will embed the latest technologies as part of it that will help give them achieve uplifts in productivity and safety without having to buy a new machine .
Q Looking at Örebro specifically – you have opened a new heat treatment facility for rock drills recently plus you have added an exploration drilling testing and competence center – are these indicative of a continued commitment to Örebro as your major manufacturing and R & D hub ? A Of course – Örebro remains our largest site , and is home to the majority of our engineers . It is also where we manufacture our most advanced equipment . Beyond that the mining cluster we
8 International Mining | JULY 2023