Published: May 5, 2016 |

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Sandvik has consolidated to three business areas and identified non-strategic operations.

First, Sandvik moved Wolfram (Wolfram Bergbau und Hütten) and two selected production sites from Sandvik Hyperion into Sandvik Machining Solutions. These businesses are internal suppliers to Sandvik Machining Solutions. Wolfram supplies raw material through virgin material from the mine, through its recycling operations as well as from third party suppliers. The selected production sites in Sandvik Hyperion supplies metal powder and develops round tool blanks.

Second, the company moved Sandvik Drilling and Completions (Varel) into Sandvik Mining and Rock Technology. The product offering comprises consumables — drill bits and down-the-hole products — to the oil & gas and mining industries. Drill bit products have the equivalent business logic as the consumable offering in Sandvik Mining and Rock Technology, in being an important driver for customer productivity.

Third, Sandvik Process Systems and Sandvik Hyperion, excluding the two sites to be merged into Sandvik Machining Solutions, have been identified as non-strategic operations and will remain in Sandvik Venture, now to be labeled other operations. Over time, Sandvik has the ambition to exit from these businesses, although the process is yet to be initiated.

“By consolidating operations we will achieve total ownership and accountability for the respective businesses, aiming to improve the long term efficiency in Sandvik. For Sandvik Machining Solutions the structural change is driven by achieving total ownership of the supply chain and strengthening the position in the round tools segment. For Sandvik Mining and Rock Technology we consolidate the similar product offering of Rock Tools and Drilling and Completions under the same umbrella. Over time we will exit from the businesses now reported in other operations, making Sandvik even more focused on its core businesses,” said Björn Rosengren, president and CEO of Sandvik.

About Sandvik
Sandvik is a high-tech and global engineering group offering advanced products and services that enhance customer productivity, profitability and safety. Sandvik holds world-leading positions in selected areas — tools for metal cutting, equipment and tools for the mining and construction industries, stainless materials, special alloys, metallic and ceramic resistance materials as well as process systems. In 2015, the group had about 46,000 employees and sales of about 91 billion SEK in more than 150 countries.

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