We spoke with Anders Berglund, Vice President of Industrial at MSM Group, about the evolving needs of the mining industry, the future of automation and electrification, and growth opportunities in Mongolia. With extensive international experience across markets including Norway, Saudi Arabia, South Africa, and West Africa, Anders has witnessed firsthand the growth and transformation of Mongolia’s mining industry. Drawing on this experience, he shared his perspectives on the unique characteristics of Mongolia’s industrial market, its current challenges, and future opportunities. He also highlighted MSM Industrial’s strategic direction and the importance of delivering tangible value to customers.
-My journey to Mongolia began in 2009–2010, when I was responsible for the underground aftermarket division at Atlas Copco. I was involved in a feasibility study and product proposal and visited Mongolia for meetings with Rio Tinto’s block-caving project team, which was based in Canada at the time.
Back then, Atlas Copco Mongolia was managed by Atlas Copco Central Asia. In 2011, the General Manager for Central Asia, whom I had previously worked with in South Africa, contacted me to ask whether I would be interested in becoming Country Manager for Atlas Copco Mongolia.
After discussing the opportunity with my family, we made the decision quite quickly, and I moved to Mongolia in early 2012. My relocation was delayed by a few weeks following knee reconstruction surgery after an accident in Morocco, so I arrived at the end of February on crutches!
The period from 2009 to 2012 marked Mongolia’s first major mining boom, with significant investments in projects involving Oyu Tolgoi, Boroo Gold, SGS, MAK and others. However, the boom came to an abrupt halt in 2013 when negotiations between Rio Tinto and the Government of Mongolia stalled.
We had to make significant structural adjustments to survive, but this period also gave us an opportunity to prepare for the future. The company decided to remain in Mongolia, so we invested in strengthening our foundations. We implemented a modern ERP system, trained key technicians through an exchange programme with a mine in Sweden in cooperation with Atlas Copco Sweden, and worked towards ISO certification, among other initiatives.
When the mining boom returned in late 2015 and early 2016, our organisation was ready. We had built a solid quality foundation, developed our people and established the right structure to support future growth. I spent eight years with Atlas Copco and Epiroc in Mongolia, which is quite unusual in the corporate world, where people typically spend a maximum of five years in the same position.
The main reason I stayed was my team. I had a great group of young people who were eager to learn and develop, and every day brought new challenges. Most importantly, I wanted to leave behind a strong organisation that could continue to grow long after I moved on. In 2019, I felt it was time for a new challenge and was asked to take responsibility for Epiroc’s operations in West Africa. It was a completely different experience.
-I would divide Mongolia’s mining customers into four main categories, each with different priorities and levels of development.
First, large international mining companies such as Rio Tinto and Oyu Tolgoi. Ten years ago, the priority was to complete major projects, almost at any cost. Today, the focus has shifted towards operational performance, productivity, and cost per tonne. Every dollar spent is evaluated carefully, and suppliers must demonstrate how they can add measurable value to the operation to be considered as partners.
Safety has always been important and continues to represent a significant part of management of KPIs.
Second, large domestic mining companies such as MAK, SGT, and Khan Altai. These companies are gradually adopting more modern operating methods and placing greater emphasis on total cost of ownership (TCO) and cost per tone. This creates opportunities for us to introduce modern approaches, share our expertise, and improve operational performance. There are still challenges, including procurement-related corruption risks, although the situation is gradually improving. Many of these operations also rely on subcontractors working with very low margins, so we need to assess risks carefully when doing business with them.
Third, small domestic mining companies. These companies tend to focus primarily on purchase price and cash flow, with limited understanding of TCO or productivity KPIs. As a result, they generally represent a higher business risk.
Fourth, state-owned mining companies. So far, I have not seen clear indications of a significant shift towards a more professional, performance-driven approach to operations in this category.
-Across the mining industry, particularly among large international and domestic mining companies, several important trends are emerging.
First, there is a growing focus on energy consumption, with a gradual shift from fossil fuels towards electricity and battery-powered solutions.
Second, customers are showing greater interest in operational efficiency tools, including software and automation solutions.
Third, the expectations placed on technicians are increasing. As equipment becomes more advanced, technicians need stronger knowledge of software, digital products and integrated technologies.
Finally, customers expect more from their suppliers. It is no longer enough to simply sell equipment. Suppliers must provide expert advice on product selection, help resolve operational challenges and demonstrate how their solutions can improve productivity and reduce costs.
The construction industry, on the other hand, has not changed significantly in this respect. It remains largely project-driven and heavily influenced by cash flow.
-Working on the manufacturing side taught me the importance of understanding the customer’s application and identifying innovations that can improve their operations. To add real value, you need to understand how customers operate, what challenges they face and what they are trying to achieve.
For me, the key priorities are knowledge, customer centricity, quality, innovation and profitable growth. These are not about making dramatic changes for the sake of change. They are the fundamental principles guiding how I want to strengthen MSM Industrial.
By improving our technical knowledge and deepening our understanding of our customers’ operations, we can become better partners and help them achieve better results.
We also need to be more customer centric. At the end of the day, our customers are the reason we exist.
It’s quite a difference within JJ MSM group as the customer base is totally different. Automotive has a large portion of the business in B2C with thousands of customers and if we for some reason lose a few customers in this segment, it doesn’t really affect our reputation or business.
Beverage is similar to Industrial in business split but a totally different market. If some of Industrial’s key customers are disappointed with us it will have huge effect on our business, that’s why we always need to be extremely customer centric.
Quality is equally important. When we have strong processes and maintain high standards, we make fewer mistakes and deliver more reliable solutions. Finally, growth must be profitable.
For example, there is little point in expanding our service operations if they are not generating a profit. Our service business must operate as a profit centre, not a cost centre.
This year, we launched our own Technical Academy and strengthened our cooperation with GIZ. We also have an apprenticeship programme that brings in 20 students each year. Looking ahead to next year, we will place greater emphasis on developing our sales engineers, particularly their product knowledge and understanding of equipment applications.
However, one thing I always emphasise when it comes to development is that personal motivation matters. You need to have your own drive to learn and improve. A company can provide training, opportunities and support, but the desire to develop must come from within. If someone lacks the motivation to learn and grow, that eventually becomes visible in their work.
-For me, it is quite simple: our customers make money when their equipment is running, and they need to see the value of working with MSM. Everything we do should contribute to that outcome. We need to be passionate about our work and proud of what we deliver.
That means having the right people, the right attitude and a genuine commitment to our customers. For me, it comes down to three things: People, Passion and Pride.
-I could easily spend a couple of pages answering this question, but in short, Mongolia is a young democracy that is rapidly adapting to large-scale mining and the challenge of developing the industry sustainably, despite having a relatively small population.
At the same time, unclear rules and regulations from the Government of Mongolia create uncertainty for businesses. This combination makes the market both challenging and promising. There is significant potential for growth and development, but realising that potential requires greater regulatory clarity, consistency and a long-term approach.
-Without a doubt, I see the greatest opportunities in mining operations outside direct government ownership. Energy and infrastructure also have enormous potential if political decision-makers can work together and make decisions that serve the country’s long-term interests.
However, over the next few years, I believe mining will remain the primary driver of growth in Mongolia’s industrial sector.
Since the majority of our business is B2B, we have not experienced any major direct impact so far. However, fuel supply concerns have increased interest in our electrical and battery-powered product portfolio. Customers are becoming more interested in understanding what alternative solutions are available and how these technologies could support their operations.
Globally, the industry is moving towards automation, electrification and digital equipment monitoring.
-We are seeing the same trends in Mongolia, although the mining industry tends to be conservative because of the significant risks involved in its operations. For example, our road trains operating at Oyu Tolgoi’s underground mine are already designed to support fully autonomous operation.
However, Oyu Tolgoi is not yet ready to make that transition, as substantial underground construction work is expected to continue over the next five years. Another area we are exploring is the use of electric trucks for logistics and transportation in both copper and coal operations.
This includes the potential for autonomous electric trucks transporting materials to the border. These concepts are still at an early stage, but customers are keen to learn more and explore how such solutions could work in their operations.
-That is true, but we also need to remember that Sweden has more than 100 years of experience in large-scale mining. Its safety and sustainability regulations have developed over that long period.
Mongolia is still at an earlier stage of this journey, and there is considerable progress to be made, particularly in implementing sustainable mining regulations and practices across local mining operations.
For us, safety and sustainability are important considerations when working with customers. At the same time, we need to recognise that every market develops at its own pace and that building a strong safety culture and sustainable operating practices takes time, commitment and consistent implementation.
-Our immediate priority is to make the Khanbogd branch fully operational as a regional MSM centre, providing customers in the area with more accessible equipment, spare parts and service support. Looking further ahead, we have started a feasibility study to explore relocating our Industrial and Truck workshops in Ulaanbaatar to a more suitable location. We will also focus on further developing our Automotive and Agriculture branches in Darkhan to strengthen our presence and better serve customers in the region.
I believe one of our unique strengths is our broad product portfolio. We are not limited to a single brand, which allows us to provide comprehensive solutions tailored to the specific needs of our customers, whether they are working on mining or construction projects.
Our support goes beyond equipment selection. We can develop service proposals, supply spare parts, offer rental or purchasing options, and provide financing solutions. We can also support customers in developing business plans and calculating return on investment (ROI), helping them make informed decisions.
We have been in the industry for almost 30 years, so we understand the market, the challenges our customers face and what it takes to support their operations. We make every effort to deliver on our promises and always stand behind the products and solutions we sell.
Building trust through reliable support and long-term partnerships is fundamental to the way we do business. Behind everything we do are our company values, which guide our decisions, shape our relationships and influence how we work with our customers and partners. Ultimately, we want to be more than a supplier. We want to be a trusted partner who helps customers operate more efficiently, make better decisions and achieve sustainable, profitable growth.
