The two businesses will be rejoined under the banner Sandvik Mining and Rock Technology effective July 1 in an effort to regain the synergies they used to have.
Former chief executive Olof Faxander split the Sandvik mining and construction businesses in 2011.
He also set about reassigning a number of the employees that had been in charge of product areas. This upset some Sandvik customers because the people they had been dealing with were no longer there and they had no relationships with those who had taken their places.
Faxander left Sandvik last year. He was one of several Swedish executives to fall as a result of a scandal relating to a corporate jet scandal.
He was replaced by former Atlas Copco executive Bjorn Rosengren, who has brought the mining and construction businesses back together again.
According to the company, Sandvik Mining and Rock Technology’s operations will be organised in “a decentralised business model with separate product areas based on the product offering”.
Rosengren said products developed for the mining and construction markets were based on common technologies.
“In addition, manufacturing units are already largely shared with, to some extent, shared front line resources,” he said.
“By joining the operations into one business area we achieve a leaner and more efficient structure.
“The decentralised model enables an even clearer focus and faster response to our customers.”
Sandvik Mining president Lars Engstrom has been appointed president of Sandvik Mining and Rock Technology.
However, Sandvik Construction president Dinggui Gao will leave the company on July 1.