This project work explores the macro environment of countries of the Middle Eastern sales area of Sandvik Mining and outlines current projects in the feasibility and pre-production stage. Many countries in this area suffer from unstable political environments and have been stricken by civil unrest. The literature review further reveals that many economies of those countries strongly rely on resource industries, especially the oil and gas sectors. A client survey concerning the reliability and client satisfaction of Sandvik supplied bulk handling equipment in the Middle East was conducted. The largely positive feedback in this survey confirms the quality of Sandvik supplied machines and enables the company for further growth in this area. Bulk material handling equipment usable in this market area includes rail mounted stackers, reclaimers, combined stacker/reclaimers and shiploaders. Sandvik’s latest product range and technical features confirms Sandvik’s flexibility to provide machines to this market area for any required application. One of Sandvik’s major clients in Australia provided performance and reliability data of a bucket wheel reclaimer which operates in an iron ore stockyard in Western Australia since 2010. This data demonstrates that the delivered performance and reliability of one of Sandvik’s latest generation bucket wheel reclaimers meets contractual requirements. A comparative analysis of risk ratings concerning long term and short term political and economic risk and business environment of the relevant countries is elaborated. This risk analysis substantiates that today only Bahrain, Israel, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates are potential target markets for Sandvik. Furthermore, a SWOT analysis illuminates strengths, weaknesses, opportunities and threats of the respective region for Sandvik and highlights the challenges most of these countries pose. More stable and predictable political and economic conditions in these countries could lead to accelerated growth and more favourable business conditions for Sandvik in the future. Based on the aforementioned results and findings the following recommendations are suggested: Sandvik should actively target projects in Bahrain, Israel, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, should get actively involved in pre-feasibility works with potential customers, should intensify aftermarket activities with current customers and penetrate the aftermarket for bulk material handling equipment of other suppliers. Finally findings of this project paper indicate potential business opportunities for Sandvik’s construction division in the Middle East which should be further explored.
|Translated title of the contribution
|The market for bulk material handling equipment in the Middle East, challenges and Opportunities
|25 Oct 2012
|Published - 2012