(Bloomberg) -- Sweden’s Atlas Copco AB has turned to one of its long-serving senior managers to lead the industrial equipment maker after Mats Rahmstrom steps down as chief executive officer later this year.

From May 1, Brazilian-born Vagner Rego will take charge as the company’s new president and CEO, according to a statement on Thursday. He joined the Swedish group as a trainee engineer in 1996 and rose through the ranks to his current position, running the business area focused on compressed air and gas products for industrial clients.

Rego will take charge of a 150-year-old company that continues to demonstrate solid performance across its industrial end-markets despite economic headwinds. He will have to navigate the prospect of weaker demand in some segments with question marks lingering over a soft landing in the US and the extent to which Asian and European clients can grow their spending plans.

Atlas Copco’s shares gained as much as 2.3% when trading started in Stockholm on Thursday. With a market value approaching $77 billion, it remains the biggest listed company in Sweden.

Read More: Atlas Copco CEO Departs After 35 Years at Industrial Giant

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