Last edited: 13.4.2022

Market Overview

Drilling consumables manufactured and supplied by Robit are used for the needs of the mining, quarrying and forepoling, underground construction and well drilling industries.

The overall market situation in 2021 was good and COVID-19 had only a limited impact on demand. Demand in the mining industry returned to good levels and mines did not experience the same COVID-19-related disruptions as in 2020. Demand in the construction industry was largely at a good level in Robit’s key markets.

Robit’s present market share, competitive products and the steady demand typical for 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 to grow beyond economic cycles by approximately 3-5% per year.


AMERICAS

Demand in the Americas clearly strengthened compared to the previous year. Temporary mine closures and disruptions to construc­tion activity caused by the restrictive measures experienced in 2020 were not seen at significant levels in 2021.

Robit’s strong growth in the Americas was mainly driven by the realization of growth projects during the year. This development was supported by the return to normal levels of activity for existing mining customers in Peru. Robit succeeded in winning new mining accounts in North and South America. The company also expe­rienced strong growth in the construction segment in the USA and Canada, together with distributors.

During the year, Robit strengthened its sales coverage in the mining segment by signing two new distributor agreements, both having significant business with several mining companies in the USA and Canada. These partnerships will open up good growth opportunities for Robit in the USA and Canadian mining markets.


EMEA

The EMEA sales area is divided into four main regions: the Nordic countries, Central Europe, the Middle East and Africa.

In the Nordic countries, overall demand was at a good level across all customer segments. The piling market for infrastructure construc­tion was active in Finland and Norway. The geothermal well drilling market was very strong in Finland and Sweden. Mining activity conti­nued steadily at a good level.

The Central European market is focused on infrastructure construc­tion. Overall, demand in the sales area was at a satisfactory level. Demand in the Middle Eastern and African market is concentrated in the mining sector, where activity was at a good level. During 2020, COVID-19 shut down mines in South Africa. Similar situations were not seen in 2021, and the mines operated normally.

Robit’s growth was driven by success in all target markets in the Nordic countries, winning new mining customers in the Middle East and southern Africa, and the return of existing customers to normal operations in South Africa.


EAST

In the East sales area, demand for mining was stable and mines operated without significant interruption throughout the pandemic. In the last quarter of the year, Robit won a significant new mining account in Russia and increased its share of the drilling equipment needs of the region’s largest mining customer.

In construction, demand clearly slowed down in large infrastructure projects using the piling rigs that are part of Robit’s DTH business.

The decline in Robit’s East sales area’s net sales was related to a drop in demand for project work after a strong 2020. Several major projects are still in the pipeline in the sales area, but their launch has been delayed.


ASIA

Robit’s business in Asia is mainly related to the construction industry. The market situation in Asia varied from country to country. During the year, Robit managed to increase its sales coverage in Malaysia where the company signed a distribution agreement with a new partner. After a challenging start to the year, the situation turned around and sales increased during the last quarter. Before the turn of the year, Robit, together with a Vietnamese distributor, won a major mining contract in Laos. The company is well positioned to grow in the Asia sales area, together with its network of distributors in all key markets.


AUSTRALASIA

Robit’s business in Australasia is mainly related to the mining customer segment. The demand situation was good, and the mines operated without significant disruption throughout the pandemic. High mineral prices significantly increased the demand for explo­ration drilling in particular. During the year, growth in the explora­tory drilling market was constrained by the availability of skilled personnel. Existing capacity was at a high level of utilization.

Robit has one major long-term mining customer in Australia. This customer accounts for a significant share of Robit’s Australian net sales. Robit managed to strengthen its position mainly through small- and medium-sized contractors.