The JV is expected to be formed within the next six months, following regulatory approvals.
Sandvik Mining will manage the company which is planned to be operational by the end of 2011.
Shandong Energy Machinery is a subsidiary of Xinwen Mining group.
The joint venture will focus on sourcing, assembly, sales and service of roadheaders for the large Chinese coal mining market.
Sandvik will offer product know-how and technology services while Shandong Energy Machinery will contribute with local sourcing skills and customer application knowledge.
