Sandvik Machining Solutions has decided to review the potential closure of a production plant for round tools within the Walter division in Frankfurt, Germany. Production volumes would be transferred to other units within Sandvik Machining Solutions.
The envisaged closure would be expected to be finalized by mid-2021 with a full run-rate of net savings of about SEK 110M. Costs related to the restructuring, amounting to about -SEK 365M, will impact Sandvik Machining Solutions’ operating profit in the Q1 of 2020, with the majority impacting cash flow.
