Epiroc says it has decided to restructure the manufacturing of its handheld rock drilling equipment and tools business in China.

The company is exiting the business due to its unprofitability, with Epiroc saying the move was part of its ongoing actions to “optimise its product portfolio and exit non-core areas to increase focus and efficiency”.

The restructuring mainly involves closure of the production facility for handheld drilling consumables in Shandong, China, and divestment of certain assets. It is expected to be finalised by year-end.

The business has annual revenues of around SEK125 million ($13 million), and about 300 employees will be affected, Epiroc said.

Helena Hedblom, Senior Executive Vice President Mining and Infrastructure at Epiroc, said: “It is unfortunate that some of our employees are negatively affected. However, this restructuring is necessary to ensure our long-term competitiveness.”

As previously communicated, in September Epiroc completed the divestment of its geotechnical consumables product line.

The restructured and divested businesses are part of the Rock Drilling Tools division in the Tools & Attachments segment, and related costs of SEK179 million have been booked in the September quarter.