Sandvik held its fully booked Capital Markets Day in Sandviken, Sweden, on 24th of September. Growth and operational excellence were the key themes. CEO Olof Faxander outlined his plan for the next three to four years, including the company’s shift toward fast-growing markets, higher returns and reduced earnings volatility. “Implementation of the new strategy has been carried out with speed and determination since its launch in 2011. This has resulted in a more customer-centric organization, operational excellence, restructuring and a turnaround for the company – all of which are crucial to our growth ambitions,” said Faxander in his speech, and gave several examples from all areas.
Photo courtesy of Sandvik
However, Sandvik faces various types of challenges on a continuous basis. Production levels are being adjusted in the Sandvik Mining business area in response to the market slowdown observed during the first half of the year. To enhance supply-chain efficiency, Sandvik intends to reduce the number of its sites from the current 150 to approximately 125 within the next three to four years. In terms of investments, Sandvik will base its allocation of capital to its business areas on their size, growth and return.
