Sandvik has identified additional structural efficiency measures that will generate roughly SEK600 million in annual savings, including the third and final phase of the supply chain optimisation programme. Results for 4Q15 will be impacted by non-recurring charges totalling SEK1550 million. Following a review of Sandvik Mining’s supply chain optimisation programme Phase Two, Sandvik releases cost provisions of SEK169 million. The targeted savings for the total supply chain optimisation programme are SEK1.3 billion for continuing operations.
“The total supply chain optimisation program will reduce the number of production units by 23, in line with the original target for continuing operations. We will achieve significant efficiency improvements as a result of the reduction in the cost base over time,” says Björn Rosengren, Sandvik’s President and CEO.
“The additional right sizing measures are structural and taken to improve internal efficiency long term, hence do not reflect any recent change in the market environment. Impairment losses are primarily related to weaker than expected performance in parts of Sandvik’s operations in China.”
Adapted from press release by Rebecca Bowden
Read the article online at: https://www.worldcement.com/europe-cis/11122015/sandvik-to-optimise-supply-chain-162/