A mining equipment manufacturing company headquartered in Sweden is expanding its operations in Saskatoon, breaking ground on its latest manufacturing facility Monday.
Sandvik will construct a 51,000-square-foot facility in the northern part of the city, expected to bring manufacturing work typically conducted overseas to Saskatchewan.
The $51-million investment will focus on mechanical cutting, parts and services to support the mining sector across central and western Canada.
“We have a wash bay, sandblast bay, we can do welding, we can do testing on electronics and hydraulics. So it’s really a facility that caters to the whole suite that we need to rebuild our equipment,” said Thomas Vallant, Sandvik president of mechanical cutting.
Sandvik’s customers mine a range of products, from potash to uranium, including major mining companies Nutrien and Cameco, said Vallant.
“Wherever there is mining, we’re basically partnering with those customers,” said Vallant, adding that Saskatchewan is the “perfect place” for the business because of its potash opportunities.
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Opening up a servicing facility in Saskatoon is an undertaking the company has been interested in for over 18 years.
Saskatoon’s facility is expected to create 30 new jobs with the potential of future training opportunities in partnership with the provincial and federal governments.
“We will be looking for specialized trades in regards to mechanics, fitters, welders and also a lot of administrative support as well,” said Peter Corcoran, Sandvik’s vice-president of sales in Canada.
In December, Sandvik broke ground on a similar $85-million project in Sudbury, Ont., which will support 60 new jobs in that province.
Sandvik sources materials for its machinery from European countries such as Germany, Austria and France, said Corcoran, adding that the company plans on bolstering manufacturing capabilities in Canada as well.
“Our intent is to find local suppliers who can actually manufacture components for us, which we’re doing today, but build on that so we have partnerships where we manufacture goods in Canada by Canadians and in Saskatoon by people in Saskatchewan,” said Corcoran.
Corcoran adds that the company does not intend to bring in products from the U.S. to avoid tariffs.
“We think tariffs will probably be there for a long time, even after the current administration’s gone. So we need to build that capacity inside the country as much as we can.”
Saskatchewan’s trade and export development secretary says the new facility investment will make the province’s mining sector more efficient by enhancing its infrastructure and bringing offshore operations onto Canadian soil.
“Companies like Sandvik have an important role to play in the growth because it’s investments like these today that help fuel it,” said Jamie Martens.
Construction on the new facility is expected to be complete by the end of the year.
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