Sandvik reorganises operations

Sandvik has reorganised its operations in the Sandvik Venture business area. Reorganisation includes:

• Moving Wolfram and two selected production sires from Sandvik Hyperion into Sandvik Machining Solutions – These business are internal suppliers to Sandvik Machining Solutions. Wolfram supplies raw material through virgin material from the mine, through its recycling operations and from third party suppliers. The selected production sites in Sandvik Hyperion supplies metal powder and develops round tool blanks.
• Moving Sandvik Drilling and Completions (Varel) into Sandvik Mining and Rock Technology – The product offering comprises consumables 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.
• Sandvik process Systems and Sandvik Hyperion, excluding the two sites being merged into Sandvik Machining Solutions, are identified as non-strategic operations and will remain in Sandvik Venture, now to be labeled other operations – Over time, Sandvik aims to exit from these businesses, although the process is yet to be initiated.

The new structure will be effective as of 1 July 2016, with Sandvik Venture business area and management team hence being dissolved. Björn Rosengren, Sandvik’s President and CEO will have the formal responsibility for other operations, while the responsibility for further development of the business will remain with the respective product area management teams. Jim Nixon, current President of Sandvik Venture will leave Sandvik as of 1 July 2016.

“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, says Björn Rosengren, Sandvik’s President and CEO.

Adapted from press release by Rebecca Bowden

Read the article online at: https://www.worldcement.com/europe-cis/09052016/sandvik-reorganises-operations-57/