Sandvik Materials Technology is divesting its distribution business in Australia and New Zealand to Vulcan Steel. The divested operations include leading processors and distributors of stainless steel products and other corrosion and wear-resistant products in Australia and New Zealand. Currently, they form part of the Tube product area at Sandvik Materials Technology. The divested operations involve a limited linkage to the rest of the business area, with a very small part of the total sales coming from Sandvik’s own production system. The divestment does not affect the other Sandvik business areas in these countries.
Photo courtesy of Sandvik
Vulcan Steel is a privately owned steel distributor with operations in Australia and New Zealand, including 22 facilities working in long product distribution, coil processing, and plate service. As part of the transaction, a distribution agreement has been put in place between Sandvik and the new owner, to enable continued deliveries of Sandvik Materials Technology products to the region. “This divestment is well in line with Sandvik Materials Technology’s strategy to focus on attractive segments, such as energy, and exit businesses considered non-core”, says Petra Einarsson, president of Sandvik Materials Technology. The transaction is expected to be finalised in October 2014.
