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Firm puts China on cutting edge

(China Daily)
Updated: 2009-04-06 07:50

A Sandvik-made large slew-type ship loader in a seaport in East China. The Swedish industrial group has 10 production sites engaged in the manufacturing of machinery, tools and materials. Company photo

Editor's note: Swedish hi-tech engineering firm the Sandvik Group has joined hands with Jiangsu Huangpu Renewable Resources Utilization Co Ltd to introduce a mobile crushing technique to China. The technique can recycle building waste via smashing and processing it in specific retainers with zero emission, which is now being applied at a Nanjing chemical fiber factory dismantling. Sandvik Group operates tooling, mining and construction, and materials technology businesses with 50,000 employees in 130 countries, with annual sales of approximately about $11 billion.

In addition to green technologies, Sandvik is well known for its efforts at environmental protection in daily operations. The 147-year-old industrial behemoth entered China in 1985, and now has 1,800 employees, 25 sales offices and 10 production sites in the country, with annual sales here in 2008 that amounted to 4.4 billion yuan.

Svante Lindholm, CEO of Sandvik China, shared his view with China Business Weekly reporter Liu Jie on the company's environmental protection strategy in both the world and domestic market.

Q: Sandvik is well-known for environmental protection in related technology application and daily operation, so what has it done in this field?

A: Sandvik Group has set a series of environmental protection and energy conservation targets. Our Group will make every effort to utilize energy and raw material effectively, curb pollution and cut emission, attach great importance to recycling as well as reduce the impact of toxic chemical material on the environment.

Specifically, our short-term aim is to decrease electricity consumption relevant to sales by 10 percent and CO2 emission generated by fossil fuel by 10 percent at the end of 2010, compared to 2004. Before that time, chloride organic solvents will be replaced by other solvents or material.

I can give you two examples. Sandvik Material Technology (SMT) factory in Sandviken (birthplace and headquarters of Sandvik) and the factory in Hallstahammar are the major raw material consumption operation. The most important raw materials for SMT are iron, nickel, chromium, manganese and molybdenum, always in the form of alloy or metal scraps. Eighty percent of those come from recycled scraps. Wolfram, cobalt and some seldom-used elements such as tantalum are major raw materials for Sandvik cutter, iron and manganese for Sandvik Mining and Construction. Eighty-six percent of the raw material comes from scraps.

Q: What kind of environmental protection work has Sandvik done in China?

A: Hard alloy recycling is presently carried out in China. Sandvik Group enjoys a highly efficient logistic system and we have three logistic centers in Europe, Asia and North America. Used cutters from China are sent to the logistic center in Singapore and then delivered to the factory in India. We simplify the process for our clients as much as possible and provide them with plastic cylinders for cutter collection and wooden containers for transportation without any charge. The only thing our Chinese clients have to do is to inform Sandvik, and then we will send a logistic company to collect the cutters.

Q: Is there any difference in your environmental protection work standards and enforcement in China and other countries?

A: We prescribe the same standards to all countries, including China. That means the Sandvik facilities in China in- and outdoors have the same environment policy as the facilities in Sweden and the United States.

Q: Many companies complain that it is hard to balance environmental protection and economic benefit. What is your opinion on this?

A: Obviously, our investment at the beginning is large. Sandvik opened an environmentally friendly factory to recycle used cutters and give corresponding compensation to clients.

But from a long-term perspective, we can reduce our raw material cost through recycling. And from the view of environmental protection, 70 percent of the energy consumption can be saved from raw material to finished products. The greatest significance lies in this point. We should be more far-sighted and not focus merely on economic benefits.

Q: Engaging in environmental protection in China, what are the major challenges for Sandvik?

A: Publicity work has begun a long time ago; however, the cutter recycling program launched only in recent years. We have to continue the publicity work toward our staff, clients, and local residents, and raise their awareness of environmental protection.

Nowadays the Chinese government as well as many enterprises pay increasing attention to environmental protection. The recycling program conducted by Sandvik helps our clients improve the environmental protection standard of their own company and forming a sound atmosphere of environmental protection in the whole society.

Q: As a Swede, from your viewpoint, how can ordinary people participate in environmental protection in their daily lives?

A: I see bins for rubbish sorting and recycling in my residential community. I believe it is an effective way to protect our environment. For the large amount of battery utilization and difficulty in recycling, we set out some waste battery recycling bins in Sandvik China.

At present, Beijing enacts traffic control according to the last number of license plates. I am confident that it is a feasible way to cut CO2 emission. In Sandvik, we have a policy of automobile procurement, with very clear restrictions on the emission of the cars.

(China Daily 04/06/2009 page3)