Sandvik has successfully implemented a new strategy. Presented in September, 2011 the strategy laid out a path toward a strengthened market leadership position. Recent strategic reviews have revealed additional potential for structural improvements in several business areas. In addition to the ongoing improvement efforts at Sandvik Mining, a reduction of 650 employees globally has been deemed necessary, including the closure of units in North Bay, Canada, and Rocklea, Australia. Third-party contracts with more than 350 individuals will be terminated.
“A year has soon passed since we began the implementation of the new strategy. A great deal of hard work has been done and much has been achieved,” said President and CEO of Sandvik, Olof Faxander. “In our drive to continuously improve our company, we have identified several additional opportunities. Consequently, decisions have been taken on a number of actions to adjust costs and capacity. None of these measures affect our ability to grow our business in the long term.”
The distribution center in Kentucky, U.S., will incorporate Seco Tools products and Seco Tools U.S. distribution center in Troy will be closed. Combined with other initiatives across the business area, including a headcount reduction in Fagersta, Sweden, this is expected to result in a structural reduction in costs of 150 million SEK.
Targeted cost savings will amount to more than 1 billion SEK by the end of 2013.