Atlas Copco

Atlas Copco AB
Publicly traded (Aktiebolag)
Traded as OMX: ATCO A, ATCO B
Industry Industrial equipment
Founded 1873 (1873)
Headquarters Nacka, Sweden
Key people
 Hans Stråberg
(Chairman),
Ronnie Leten
(President and CEO)
Products Compressors, vacuum solutions, generators, construction and mining equipment, industrial tools and assembly systems
Revenue SEK 102 billion(2015)
Number of employees
 43,588 (end of 2015)
Subsidiaries Atlas Copco,
Chicago Pneumatic,
Edwards,
Henrob,
BeaconMedaes,
Quincy Compressor,
SCA Schucker, and more.
Website www.atlascopcogroup.com
Footnotes / references
[1][2][3]
Atlas Copcos main office in Nacka, 2014.

Atlas Copco is a Swedish industrial company that was founded in 1873.[4] It manufactures industrial tools and equipment.[3]

The Atlas Copco Group is a global industrial group of companies headquartered in Nacka, Sweden. In 2015, global revenues totalled SEK 102 billion, and the company employed more than 43,000 people. The company manufactures products at about 100 production sites in more than 20 countries. As of 2015, the United States is the company's largest single market, followed by China.[5] The firm's shares are listed on the OMX Stockholm exchange and both 'A' and 'B' classes form part of the benchmark OMXS30 index.

Atlas Copco companies develop, manufacture, service, and rent industrial tools, air compressors (of which it is the world's leading producer),[6] construction and mining equipment such as rock drills,[7] assembly systems. The Group operates in four areas: Compressor Technique, Mining and Rock Excavation Technique, Construction Technique and Industrial Technique.[3]

History

Early development

AB Atlas, as it was previously named, was founded by Edvard Fränckel, who was a Swedish industrialist, politician and senior official at Swedish State Railways. The company was established along with Andre O. Wallenberg, Johan W. Arnberg, Carl G. Cervin and Fredrik Didro. In its inauguration phase, Atlas dealt with the manufacturing, purchasing and selling of all types of material for railroad construction and operations. After the hard hit of the recession in the 1880s and the decline in railroad construction, Atlas diversified its undertakings and branched off into locomotives, central heating and tool machinery. In 1899, Atlas began developing their first air compressors and established itself as a compressor manufacturer. As older production branches started phasing out, Atlas teamed up with Diesel Motors in 1917 and the new company of Atlas Diesel emerged with two primary divisions; Diesel engines and compressor air products.

Post-war development

The Atlas Diesel merger experienced significant growth during the First World War and towards the end of the war, export dominated 40-50 % of production. The depression years caused significant losses for the company, which led to several financial reconstructions in the 1920s and 1930s. The economy began recovering and demand started growing again In the mid- 1930s and Atlas Diesel experienced a boom in sales, where compressed air operations was the most expansive area.The Second World War remained an active period for the firm and an epoch where strategic planning for development played a principle roll. Manufacturing capabilities were embellished and the purchasing along with the acquisition of manufacturing subsidiaries in Sweden and other countries, was a key component to Atlas Diesel's continued growth post WWII. ''The Swedish Method'' was an another war period strategy that strongly influenced the firm's pneumatic program, consisting of lightweight rock drills and drill bits with carbide tips. In 1948 the company terminated its Diesel manufacturing and the name ''Atlas Diesel'' was no longer pertinent. The name Atlas Copco became official in 1955 and was inspired by the Belgian subsidiary – Compagnie Pneumatique.

Structure and governance

Business areas

Atlas Copco has four main business areas; Compressor Technique, Industrial Technique, Mining and Rock Excavation Technique and Construction Technique.[8] They all focus on the design, manufacturing and marketing of a large range of products for different industry segments.

Management

Atlas Copco’s organization is based on the principle of decentralized responsibilities and authorities. Their operations are organized into four business areas and 23 divisions. The organization has both operating units and legal units. Each operating unit has a business board which reflects the operational structure of the Group. The duty of a business board is to serve in an advisory and decision-making capacity concerning strategic and operative issues. It also ensures the implementation of controls and assessments. Each legal company has a legal board focusing on compliance and the legal structure of the Group.

Board of directors

The Board of Directors has overall responsibility for the organization, administration and management of Atlas Copco. The Board sees to it that all applicable rules are followed and that control systems are in place.The Board regularly evaluates the long-term growth incentive program based on the current financial situation and the financial, legal, social and environmental risks.

Ronnie Leten President/CEO/Board member: Since 2009

Hans Stråberg Chairman/Board member: Since 2014

Ulla Litzén Board member: Since 1999

Anders Ullberg Board member: Since 2003

Staffan Bohman Board member: Since 2003

Margareth Øvrum Board member: Since 2008

Johan Forssell Board member: Since 2008

Gunilla Nordstöm Board member: Since 2010

Peter Wallenberg Jr. Board member: Since 2012

Bengt Lindgren Board member: Since 1999

Mikael Bergstedt Board member: Since 2004

Ulf Ström Board member: Since 2008

Kristina Kanestad Deputy: 2007

Operations

Manufacturing

Atlas Copco manufactures critical equipment components in-house and cooperates with business partners for non-critical components. Approximately 75% of the production cost of equipment represents purchased components and around 25% are internally manufactured core components, assembly costs and overhead. Equipment represents less than 60% of revenues and the manufacturing of equipment is primarily based on customer orders and only some standard, high volume equipment is manufactured based on projected demand.

Sales and service

Atlas Copco has customer centers in over 90 countries and sales in 183 countries. Sales and service are primarily direct, but also channeled through alternative sales mechanisms, e.g. distributors. Sales of equipment is performed by engineers and service and maintenance are performed by technicians. Service is the responsibility of divisions in each business area. The responsibility includes development of service products, sales and marketing, technical support as well as service delivery and follow-up. About 40% of revenues are generated from service (spare parts, maintenance, repairs, consumables, accessories, and rental).

Brands

The Atlas Copco Group has 36 brands around the world including; Chicago Pneumatic for compressors and tools, Edwards for vacuum, BeaconMedeas for medical gas solutions, and SCA & Henrob for automotive assembly solutions.

ABAC

AGRE Kompressoren

ALUP Kompressoren

American Pneumatic Tools (APT)

BeaconMedæs

Shanghai Bolaite Compressor Co.

Ceccato Aria Compressa

Chicago Pneumatic

Cirmac

Creemers Compressors

Desoutter Tools

Edwards

Ekomak

Fuji Air Tools

Gazcon

Gesan

GrassAir Compressoren

Henrob

Houston Service Industries (HSi)

Guangzhou Linghein Compressor Co.

Liuzhou Tech Machinery Co.

Lutos

Mark Compressors

Mauguière

Perfora

Pneumatech Medical Gas Solutions

Pneumatech

Puska Aire Comprimido

Quincy Compressor

Rand-Air

Rodcraft

SCA

Seti-Tec Line

Wuxi Shengda Air/Gas Purity Equipment Co.

Shenyang

Worthington Creyssensac

Corporate social responsibility

Atlas Copco has five elements in their corporate social responsibility approach; Innovation, Business ethics, Safety&Health, Resource efficiency and Competent teams.

Innovation

Atlas Copco conducts research and development in a wide range of technologies at their global research centers, where each division has it's individual area of focus and resources.The amount invested in product innovation, including capitalized expenditures was MSEK 3 253 in 2015. Training and workshops have been rolled out in customer centers and product companies in Europe and China. The divisions work with eco design achievement templates that are integrated into marketing material for customers. The Construction Tools division introduced two innovations that doubled their market sales in 2015. The Rammers LT 5005 and LT 6005 that won the 2015 iF Product Design Award and the Grand Award of Design in the Public’s Favorite category. The Construction Tools division also introduced the HRD100, the electro hydraulic hand-held rock drill developed in collaborations with customers in South Africa.

Business ethics

The Atlas Copco Business Code of Practice has been translated into 33 languages and is based on the following international standards and guidelines:

United Nations International Bill of Human Rights of the Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights.

The ILO Declaration on Fundamental Principles and Rights at Work has identified the following core labor standards: freedom of association and the right to collective bargaining; the elimination of forced and compulsory labor; the abolition of child labor; the elimination of discrimination in the workplace.

The United Nations Global Compact is the means by which businesses worldwide can align their operations and strategies with 10 core principles in the areas of human rights, labor standards, the environment and anti-corruption.

The OECD Guidelines for Multinational Enterprises are a set of government-backed standards for responsible business conduct in areas such as employment and industrial relations, human rights, the environment, information disclosure, combating bribery, consumer interests, science and technology, competition, and taxation.

Safety&Health

Atlas Copco has a global Safety, Health and Environmental (SHE) policy that sets standards for workplace safety, health and ergonomics. Each division's president, general manager and manager has operational responsibility for the safety, health and environmental performance as well as the implementation of the Atlas Copco Group SHE Policy. The Group SHE Council maintains and updates policies, which is subject to approval by Group Management. Atlas Copco companies provide training in SHE awareness and all employees are responsible for complying with safety and health regulations. The company evaluates business partners, such as suppliers, subcontractors, joint venture partners and agents in accordance with SHE regulations. Customer centers with more than 70 employees and all product companies shall be certified according to OHSAS 18001 and ISO 14001. Each division and reporting company is responsible for the reported information and key performance indicators are assessed by the Executive Committee Meeting (ECM) annually.

Resource efficiency

Environmental responsibility; Atlas Copco has a supplier evaluation process that includes business partners’ use of energy and related carbon dioxide emissions. All major product facilities and customer centers should be certified to the international environmental management standard ISO 14001.

CEO

Competitors

In mining and construction:

Air compressors:

In industrial technique:

References

  1. ↑ "Koncernstruktur ATLAS COPCO AB". Solid Info. Retrieved 4 April 2015.
  2. ↑ "Annual Report 2014". Atlas Copco. Retrieved 4 April 2015.
  3. 1 2 3 "Facts in brief". Atlas Copco. Retrieved 4 April 2015.
  4. ↑ Burton, John (2006). "Atlas Copco AB". International Directory of Company Histories. The Gale Group. Retrieved 29 September 2010.
  5. ↑ Mukherjee, Sharmistha (11 September 2010). "Q&A: Ronnie Leten, President & CEO, Atlas Copco". Business Standard. Retrieved 29 September 2010.
  6. ↑ Kinnander, Ole (22 September 2010). "Atlas Copco Says Mining Demand Quickened in Third Quarter on Metal Prices". Bloomberg. Archived from the original on 28 September 2010. Retrieved 29 September 2010.
  7. ↑ Erkheikki, Juho (2 June 2009). "Atlas Customers Stop Cancellations as Metal Prices Lift Mining". Bloomberg. Retrieved 29 September 2010.
  8. ↑ http://www.atlascopco.com/afus/atlascopcogroup/organisation/

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