Atlas Copco

Atlas Copco is a Swedish multinational industrial group whose origins lie in railway equipment manufacturing and whose modern business is centered on compressed air, vacuum technology, industrial assembly, and mobile power. Founded in Stockholm in 1873 as AB Atlas by industrialist and Swedish State Railways official Edvard Fränckel, the company initially manufactured railway carriages and other railway equipment. Economic difficulties in the 1880s led it to broaden its activities into steel and iron components, marine steam engines, boilers, machine tools and heating equipment. The company was reorganized as Nya AB Atlas in 1890, with the Wallenberg family becoming its principal owner. Its subsequent development was shaped by the growing importance of engines and pneumatic machinery. In 1917, Nya AB Atlas merged with AB Diesels Motorer, a company associated with diesel-engine production, creating AB Atlas Diesel. Although diesel engines remained important for a period, compressed-air equipment increasingly became the company’s commercial foundation. By 1915, compressed-air products already represented about half of sales, and the company’s lightweight rock-drilling technology helped establish a durable position in mining and construction equipment. After the Second World War, Atlas Diesel expanded internationally, developed a wider sales network and increased its manufacturing presence outside Sweden. The acquisition of Belgian compressor company Arpic Engineering in 1956 marked a major step in international expansion. That same year, the company adopted the name Atlas Copco, derived from the abbreviated name of a Belgian subsidiary, Compagnie Pneumatique Commerciale. During the 1960s and 1970s, the group expanded through acquisitions, decentralized its operations and increased research and development. More than 80 percent of sales were outside Scandinavia by the 1960s. Atlas Copco later broadened its portfolio through acquisitions in industrial tools, equipment rental, vacuum technology and construction-related equipment. It acquired Chicago Pneumatic Tool Company in 1987, AEG Elektrowerkzeuge in 1992 and Milwaukee Electric Tool in 1995. The electric-tool businesses were subsequently sold to Techtronic Industries in the 2000s, while the general equipment-rental business was divested in 2006. The acquisition of Edwards in 2014 and Leybold in 2016 established vacuum technology as a major business area. In 2018, Atlas Copco separated its mining, infrastructure and rock-excavation equipment operations into Epiroc, a separately listed company whose shares were distributed to Atlas Copco shareholders. Following the separation, Atlas Copco has been organized around Compressor Technique, Vacuum Technique, Industrial Technique and Power Technique. Its products and services support manufacturing, electronics, semiconductors, battery production, pharmaceuticals, food processing, mining-related applications, construction, energy, healthcare and wastewater treatment. The group operates through a broad portfolio of brands, including Atlas Copco, Chicago Pneumatic, Edwards, Leybold, BeaconMedaes and Desoutter. In 2023, it marked its 150th anniversary and introduced a visually distinct group identity to distinguish Atlas Copco Group from products sold under the Atlas Copco brand.

Atlas Copco began in Stockholm in 1873 as AB Atlas, founded by Edvard Fränckel with support from Swedish industrial and financial figures including Andre O. Wallenberg and David O. Francke. Its first products were railway carriages and related equipment manufactured in Stockholm and Södertälje. A recession in the 1880s caused substantial losses, encouraging diversification into construction components, marine steam engines, boilers and other heavy industrial products. In 1890, the company was reconstructed as Nya AB Atlas, with the Wallenberg family becoming the principal owner. The company’s strategic direction changed around the turn of the twentieth century as it developed oil engines, pneumatic machinery and compressors. In 1898, the Wallenberg interests established AB Diesels Motorer to manufacture engines based on Rudolf Diesel’s patents. Nya Atlas and Diesels Motorer merged in 1917, forming AB Atlas Diesel. The First World War disrupted international sales of compressed-air products but increased demand for marine diesel engines, particularly from Allied countries. After the war, the company experienced weaker demand, workforce reductions and financial restructuring. During the 1930s, the Great Depression again affected the business, but profitability recovered toward the end of the decade. Pneumatic tools became an important growth engine. In 1936, Atlas Diesel introduced a rock-drilling system using lightweight drills and tungsten-carbide bits. This approach became associated with the Swedish method of rock drilling and helped establish the company in mining and construction markets. Wartime orders from the Swedish Armed Forces supported diesel-engine and hydraulic-gear production, but the company’s postwar strategy increasingly favored compressed-air equipment. The diesel-engine division was sold in 1948. Atlas Diesel then built an international sales and production network. It made its first significant foreign acquisition in 1956 by purchasing Belgian compressor manufacturer Arpic Engineering NV. The same year, it changed its name to Atlas Copco AB, using a shortened form of Compagnie Pneumatique Commerciale, the name of a Belgian subsidiary. Production expanded into Finland and the United Kingdom, followed by additional international factories and acquisitions during the 1960s and 1970s. The group decentralized its organization, invested more heavily in research and development and became increasingly dependent on markets outside Scandinavia. The recessions of the 1980s and early 1990s led to factory closures and workforce reductions, but Atlas Copco also used this period to strengthen its industrial-tools portfolio. Acquisitions included Chicago Pneumatic Tool Company in 1987, AEG Elektrowerkzeuge in 1992 and Milwaukee Electric Tool in 1995. It entered equipment rental in North America through Prime Service Corporation in 1997 and expanded that position through further acquisitions, including Rental Service Corporation in 1999. The electric-tool activities were later sold to Techtronic Industries, and the general rental business was divested in 2006. In the 2000s, Atlas Copco made acquisitions in construction, drilling and industrial equipment while selling activities where it lacked sufficient international scale. Its purchase of Edwards in 2014 and Leybold in 2016 gave the group a substantial position in vacuum technology. In 2017, the company announced the separation of its mining and infrastructure equipment operations. The resulting company, Epiroc, began independent trading in 2018. Since the separation, Atlas Copco has operated through four principal business areas: Compressor Technique, Vacuum Technique, Industrial Technique and Power Technique. The group supplies equipment, systems, software, service and rental solutions to industries including automotive, electronics, semiconductors, pharmaceuticals, food, healthcare, energy, construction and manufacturing. Its 2023 anniversary and new group logotype reflected the distinction between the listed industrial group and the product brands used across its portfolio.

1. 2023150th anniversary and group identity update

   Atlas Copco celebrated 150 years and introduced a distinct Atlas Copco Group logotype.

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2. 2018Epiroc becomes independent

   Mining, infrastructure and rock-excavation equipment operations were separated into the independently listed Epiroc.

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3. 2016Leybold acquired

   The purchase of Leybold further expanded Atlas Copco’s vacuum systems and equipment business.

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4. 2014Entry into vacuum technology through Edwards

   The acquisition of Edwards established a major vacuum-technology platform within the group.

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5. 1995Milwaukee Electric Tool acquired

   Atlas Copco expanded its electric-tool portfolio through the acquisition of Milwaukee Electric Tool.

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6. 1987Chicago Pneumatic acquired

   The acquisition strengthened Atlas Copco’s position in pneumatic and industrial tools.

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7. 1956Atlas Copco name adopted

   After acquiring Belgian compressor company Arpic Engineering, the company adopted the Atlas Copco name.

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8. 1948Diesel-engine division sold

   Atlas Diesel disposed of its diesel-engine division as the business shifted decisively toward compressed-air products.

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9. 1936Swedish-method rock-drilling system introduced

   The company introduced a lightweight rock drill and tungsten-carbide bit system that became known as the Swedish method.

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10. 1917Merger creates AB Atlas Diesel

    Nya AB Atlas merged with AB Diesels Motorer, creating AB Atlas Diesel.

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11. 1890Reorganization as Nya AB Atlas

    The company was reconstructed as Nya AB Atlas, with the Wallenberg family becoming its principal owner.

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12. 1873AB Atlas is founded

    Edvard Fränckel founded AB Atlas in Stockholm to manufacture railway equipment and related industrial products.

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A premium, engineering-led industrial equipment supplier emphasizing energy efficiency, reliability, lifecycle service, application expertise and industrial productivity.

• Compressor TechniqueCompressed air and gas systems

  This business area supplies industrial compressors, gas compressors, expanders, air-treatment equipment and air-management systems. Applications include air separation, chemicals, carbon capture, hydrogen, liquefied natural gas, pharmaceuticals, food processing, healthcare, electronics, battery production, power generation and wastewater treatment. Offerings range from fixed industrial installations to specialized systems supported by service and monitoring.

• Vacuum TechniqueVacuum equipment2014

  Vacuum Technique provides vacuum pumps, exhaust-management systems, valves and related equipment through brands including Edwards and Leybold. Its technologies are used in semiconductor and display manufacturing, LED and solar production, lithium-ion batteries, food processing, pharmaceuticals, packaging, heat treatment, scientific measurement, nanotechnology and surface coating.

• Industrial TechniqueIndustrial tools and assembly systems

  Industrial Technique supplies powered assembly tools, tightening systems, machine-vision solutions and quality-assurance equipment. The business serves vehicle manufacturing, aerospace, electronics, appliances, energy, metalworking, paper production, solar equipment and general industrial production. Its portfolio emphasizes process control, repeatability, traceability and productivity rather than consumer-oriented hand tools.

• Power TechniqueMobile power and flow equipment

  Power Technique produces, rents and services portable compressors, generators, pumps, energy-storage products and dewatering systems. Customers include construction and civil-engineering contractors as well as industrial users requiring temporary or mobile power and fluid-handling capacity. The business combines equipment sales with rental, aftermarket service and application support.

• GA and GX compressor rangesIndustrial compressors

  The GA and GX ranges are marketed as Atlas Copco industrial compressor families for applications requiring compressed air. They represent core examples of the company’s fixed-compressor offering, supported by air treatment, controls, service and efficiency-oriented operating solutions.

• QAS generator rangePortable generators

  The QAS range is a portable power offering used where temporary or mobile electricity is required, including construction, events, industrial work and infrastructure activities. The range is part of Atlas Copco’s Power Technique portfolio.

• 2023150th anniversary program

  Global · United States

  Atlas Copco marked its 150th anniversary with corporate and public commemorative activities, including a bell-ringing ceremony at Nasdaq in New York.

  Outcome. The anniversary reinforced the group’s long industrial history and global corporate identity.

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• 2023Differentiate group and product-brand identitiesStrategy

  The listed industrial group operated a broad portfolio of product and subsidiary brands.

  What changed. Atlas Copco introduced a visually distinct logotype containing the word Group.

  Aftermath. The identity system clarified the distinction between Atlas Copco Group as a corporate entity and Atlas Copco as a product brand.

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• 2017Separate mining and infrastructure equipmentStrategy

  Atlas Copco concluded that its rock-excavation, drilling and demolition equipment activities could operate more effectively as a focused company.

  What changed. It announced the transfer of those activities into a separately listed company named Epiroc.

  Aftermath. Epiroc began trading independently in 2018, leaving Atlas Copco focused on four principal technology areas.

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• 2016Acquire LeyboldM&A

  The company was continuing to build scale in vacuum technology after the Edwards acquisition.

  What changed. Atlas Copco acquired Leybold, a German vacuum-technology company.

  Aftermath. The acquisition expanded the group’s vacuum products, technology base and market coverage.

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• 2014Acquire EdwardsM&A

  Atlas Copco sought to broaden its industrial technology portfolio beyond compressed air and tools.

  What changed. The group acquired Edwards and entered the vacuum-equipment industry.

  Aftermath. Vacuum technology became one of Atlas Copco’s principal business areas.

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• 1956Adopt the Atlas Copco nameStrategy

  The company was expanding its compressor activities internationally after acquiring Belgian manufacturer Arpic Engineering.

  What changed. It changed its corporate name from Atlas Diesel to Atlas Copco, using the shortened form of Compagnie Pneumatique Commerciale.

  Aftermath. The new name became the foundation of the group’s global industrial brand.

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• Criticism concerning operations in RussiaControversy

  Atlas Copco faced criticism over its activities in Russia after the Russian invasion of Ukraine. The company announced plans to discontinue operations in Russia in line with international sanctions, while concerns remained regarding the timing and ethical implications of its business presence during the conflict.

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• 2024Atlas Copco announced the appointment of Vagner Rego as President and CEO

  Vagner Rego succeeded Mats Rahmström as President and Chief Executive Officer in 2024 after having held senior leadership roles within the group.

  Leadership change
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• 2023Atlas Copco marks its 150th anniversary

  The group commemorated its 150th anniversary, including a bell-ringing ceremony at Nasdaq in New York.

  Other
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• 2023Atlas Copco introduces a distinct Atlas Copco Group identity

  The business group adopted a visually differentiated logotype incorporating the word Group, separating the corporate identity from the appearance used on products sold under the Atlas Copco brand.

  Other
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• 2018Atlas Copco separates mining and infrastructure equipment into Epiroc

  The rock-excavation, drilling and demolition equipment operations were transferred to Epiroc, which became an independent listed company.

  M&A
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• Atlas Copco continued expansion through technology-focused acquisitions

  The group has regularly announced acquisitions intended to strengthen compressor, vacuum, industrial assembly, automation, mining, and power-technology capabilities. Individual transactions vary by business area and geography.

  M&A
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1. Atlas Copco
2. Atlas Copco Group official website
3. Atlas Copco announced the appointment of Vagner Rego as President and CEO
4. Atlas Copco continued expansion through technology-focused acquisitions