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Drilling

Epiroc Consolidates Drilling Tools Manufacturing from Canada to Mexico

Strategic Insights

— 1 min read

Epiroc AB, a leading provider of productivity and sustainability solutions for the mining and construction industries, has announced plans to consolidate some of its drilling tools manufacturing from Canada to Mexico. As a result, the manufacturing site in Langley, Canada, will be closed, and production will be moved to Epiroc's factory in Matehuala, Mexico. This relocation is expected to increase efficiency and optimize customer service across the Americas.

Key Takeaways:

  • Epiroc will consolidate drilling tools manufacturing from Canada to Mexico, resulting in the closure of the Langley, Canada, manufacturing site.
  • Production of rotary and raiseboring drilling tools will be moved from Langley to Epiroc's factory in Matehuala, Mexico.
  • The relocation of production equipment from Canada to Mexico is expected to begin in the third quarter 2025.
  • The consolidation will be completed by the first quarter 2027, when production in Langley will be closed.
  • Around 65 employees will be affected by the relocation.
  • Epiroc estimates restructuring costs of approximately MSEK 70 (excluding tax impacts) in the second quarter 2025.
  • The consolidation aims to create better and more sustainable conditions for Epiroc to maintain and strengthen its presence throughout the Americas.
  • Helena Hedblom, Epiroc's President and CEO, stated that the move is necessary to optimize customer service and maintain Epiroc's strength and agility.
  • Martin Hjerpe, President of Epiroc's Tools division, emphasized that the consolidation will not compromise the quality or availability of products.

Statistics:

  • 65 employees will be affected by the relocation of manufacturing from Canada to Mexico.
  • Epiroc estimates restructuring costs of approximately MSEK 70 (excluding tax impacts) in the second quarter 2025.
  • The consolidation of drilling tools manufacturing is planned to be completed by the first quarter 2027.
  • The third quarter 2025 marks the beginning of the relocation of production equipment from Canada to Mexico.
  • Epiroc's factory in Matehuala, Mexico, will produce rotary and raiseboring drilling tools after the consolidation.

Sources:

  • News release from Epiroc AB
  • Quote from Helena Hedblom, Epiroc's President and CEO
  • Quote from Martin Hjerpe, President of Epiroc's Tools division
  • Epiroc AB's language abilities and capabilities

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