During March, the uncertainty around the coronavirus situation has gradually increased in many other parts of the world. Most production units in the Sandvik Group have been able to continue operating, however, due to government restrictions, the production is currently on hold in Italy, India and partially in other regions.
Sandvik has identified a need to mitigate future effects on the businesses from the rapid spread of the coronavirus.
Sandvik has initiated measures that will be taken across the group and include activities that support savings both short-term and long-term. The initial focus is on short-term activities with a quick impact such as reduced worktime, reduction of temporary employees and consultants, and reduced discretionary spend. Structural changes and reductions in work force to adopt to changed market conditions in the longer term are in addition being reviewed.
Temporary short-term actions will generate savings of about SEK 1.5bn in 2020. It also initiates long-term structural measures which imply costs of about SEK 1.4bn, with the majority impacting cash flow. Savings of about SEK 0.9bn from these long-term structural measures, will reach full annual run-rate by the end of 2021.
