Sandvik Divests, Restructure to be Announced

In order to further consolidate the product portfolio and improve its long term performance, Sandvik Materials Technology intends to divest parts of its operations.

Wed May 17, 2017 - National Edition
Construction Equipment Guide


In order to further consolidate the product portfolio and improve its long term performance, Sandvik Materials Technology intends to divest parts of its wire operations.

To be divested: welding and stainless wire. These businesses are subject to intense competition and Sandvik Materials Technology does not hold a No. 1-2 market position. In 2016 the wire businesses, which are to be divested, generated total annual revenues of about 700 million SEK.

- To remain in Sandvik Materials Technology: Kanthal wire for industrial heating etc. These businesses will be included in the Kanthal product area and are regarded as core businesses due to the strong market positions and growth potential. In 2016 operations now transferred into the Kanthal product area had annual revenues of about 800 million SEK.

- A charge of -450 million SEK related to the transaction will impact the result for the second quarter 2017. This is primarily impairments related to fixed assets. The cash flow impact from the transaction is expected to be positive.

"The divestment of the welding and stainless wire businesses will make Sandvik Materials Technology more focused on its core operations; advanced stainless steels and special alloys for the most demanding industries. We will continue to develop our core businesses to ensure long term value creation. A new organizational structure is being created, effective as from 1 July 2017, whereby each product area will be responsible and accountable for the entire value chain and its results. The four new product areas will be Tube, Kanthal, Powder and Strip", says Petra Einarsson, President of business area Sandvik Materials Technology.

For more information, visit http://smt.sandvik.com/en/




Today's top stories

Charles Blalock & Sons Inc. Leads $300M Alcoa Highway Reconstruction Work

VIDEO: Volvo CE Celebrates International Women in Engineering Day

Mecalac Brings New Fleet Management System to North America

Crews Rebuild, Widen 5.5 Miles of Highway, Re-Deck Bridges

Concrete Industry Management Program Holds Successful Auction at 2021 World of Concrete

VIDEO: Is Your Quick Coupler Safe, Compliant?

Washington, D.C.'s I-295 Reopens After Pedestrian Bridge Collapse

JM Wood Holds Auction in Montgomery, Alabama


 






ceg-logo ceg-logo ceg-logo ceg-logo ceg-logo