Sandvik restructuring wire- and strip operations
21 February 2012
Sandvik Materials Technology has initiated negotiations with the unions in Sweden to restructure the wire and resistance strip operations. This will enable a shift in the product mix toward more advanced and profitable products in key segments, such as the energy sector. The restructuring will mainly affect production of wire and resistance strip in Hallstahammar, Sweden, which will be discontinued over the next 18 months. In conjunction with this, efforts will be made to phase out wire products that are not significantly profitable or do not form part of the core business. The manufacturing of the remaining part of the wire product program will primarily be transferred from Hallstahammar to Sandviken, although some of the wire volume will also be moved to the wire-drawing plants in India (Hosur) and China (Shanghai). As a result of the planned changes, the workforce at Sandvik in Hallstahammar will gradually be reduced by 100 employees over the next 18 months. The goal is to manage the redundancy process in the best possible way. “The restructuring is necessary to focus the product mix toward more advanced and profitable products. The planned measures also ensure that we conduct cost-efficient manufacturing and strengthen our position in key segments, such as the oil and gas- and nuclear power industry,” says Jonas Gustavsson, President of the Sandvik Materials Technology business area. The measures form part of the Step Change Program revealed by Sandvik Materials Technology in September 2011, which aims to increase the business area’s profitability to a higher and more stable level and to strengthen their position in key segments.
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