Monday, May 20, 2024

Sandvik to Strengthen Position in Electrical Vehicles with Acquisition of German-based Software Supplier esco

STOCKHOLM, Sweden, Oct 26, 2023 – Sandvik has signed an agreement to acquire esco GmbH engineering solutions consulting, a German-based supplier of software for power skiving, an important technology within gear machining. Esco’s software solutions supports design, production and quality inspection in the main area of gear manufacturing. The company will be reported in Sandvik Coromant, a division within Sandvik Manufacturing and Machining Solutions.

Power skiving is a high-growth premium niche market, with strong underlying drivers such as the increasing electrification in the automotive sector. This shift is changing manufacturing requirements in the gear market, and power skiving offers high productivity and flexibility, and enables reduced cycle times compared to conventional machining methods.

“The acquisition of esco fits very well with our strategic focus to grow within key high-growth industry segments, in this case the area of gear machining for electric vehicles,” says Stefan Widing, President and CEO of Sandvik.

Esco, founded in 1993, has around 17 employees and is headquartered in Aachen, Germany. In 2022, the company generated revenues of about SEK 14 million. The impact on Sandvik’s EBITA margin and earnings per share will be limited.

About Sandvik Group

Sandvik is a global, high-tech engineering group providing solutions that enhance productivity, profitability and sustainability for the manufacturing, mining and infrastructure industries. We are at the forefront of digitalization and focus on optimizing our customers’ processes. Our world-leading offering includes equipment, tools, services and digital solutions for machining, mining, rock excavation and rock processing. In 2022 the Group had approximately 40,000 employees and revenues of about 112 billion SEK in about 150 countries within continuing operations. 

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Nitin Patil
Nitin Patil
Editor and Director of Content, Nitin completed his Master's in Mass Communication & Journalism and having 13 years of work experience as an editor, content writer with renowned international technical magazines and media companies. He is associated with CAD,CAM industry since 2008.

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