Drilling consumables manufactured and supplied by Robit are used for the needs of the mining, quarrying and forepoling, underground construction and well drilling industries.
Market demand was at a good level in 2022, but the Russian war of aggression in Ukraine had an impact on Robit’s business environment. Robit ran down the operations of its Russian company by the end of the year. The war also accelerated cost inflation, which was also reflected in Robit’s cost development, and delayed the progress of some construction projects. In the earthworks segment, the uncertain operating environment increased the uncertainty of demand, especially in Europe. Demand and prospects in the mining segment and well drilling remained at a good level.
Robit’s present market share, competitive products, extensive geographical coverage and the steady demand typical of consumables ensure good opportunities for Robit to grow by gaining market share from other operators in the industry. In addition, the company expects the overall market for drilling consumables to grow beyond economic cycles by approximately 3–5% per year.
Demand in the Americas clearly strengthened compared to the previous year. Sales in the region grew well in both North and South America. Growth was strong in both the Top Hammer and Down the Hole businesses.
Robit’s strong growth in the Americas region was mainly driven by the realization of growth projects in the mining segment. Sales growth was more moderate in the construction segment. The market situation in the Americas region was good in 2022, and the company is well positioned to continue growing in the region.
The sales area is split into four main regions: the Nordics, Central Europe, Middle East, and Africa.
In the Nordics, the overall demand remained at a good level. The mining market grew, which increased Robit’s Top Hammer business. In Central Europe, infrastructure construction remained at a good level.
In the Middle East, some significant infrastructure projects started, for example in Saudi Arabia supporting sales development. In Africa, mining demand continued at a strong level. As an example, Robit won a new chrome mine supply contract in South Africa. A number of product trials are under way in Africa showing good results and already providing a good opportunity for increased business, particularly in West Africa.
The war in Ukraine drastically changed the business environment in the East region. During 2022, the company delivered its pre-war export orders and ran down its operations in Russia by the end of 2022. Focus shifted to the other countries in the East region and results were seen in, for example, the Kazakhstan market. The focus in the East area is to grow the mining segment, which offers good market opportunities to compensate for the sales lost from the Russian market.
In Asia, Robit focuses on the construction industry, and more specifically on tunneling, as well as on mining. Most markets are Top Hammer-dominated. The company witnessed good growth in the region as infrastructure activity was at a good level.
Robit continued to supply a gold mine in Laos through its Vietnamese distributor for a second year, and significantly increased its market share in Vietnam. Asia is also providing good growth opportunities for 2023.
Robit’s business in the Australasia region is mainly related to the mining customer segment. The demand situation in the market was good, although a slight decrease was seen in exploratory drilling toward the end of the year.
In late 2022, Robit significantly strengthened its sales organization. Growth investments enabled the company to launch several customer tests in the second half of the year. Increasing market share in the Australian market is one of the company’s key goals for 2023.