Sandvik implements structural measures to support resilience ambitions

SANDVIKEN, Sweden, May 17, 2022 /PRNewswire/ -- Sandvik is continuously reviewing options of how to reduce complexity and increase competitiveness, efficiency and flexibility to support the strategic direction of the Group. This becomes even more important with an active inorganic growth agenda. Sandvik's most recent program of restructuring initiatives was announced in 2020, with savings now fully realized. Sandvik has now identified and decided to implement new structural measures, which will strengthen the platform going forward.  

The new measures include consolidation of productions units, site closures and optimizing the structure of the sales organization. The measures are group-wide, but with the majority in Sandvik Machining Solutions.

The iniatives will generate annual savings of about 600 million SEK, with a full run-rate expected in 2025. The savings impact during 2022 will be limited, and with gradual step up, with the share of total savings expected to be approximately 50% and 90% for 2023 and 2024 respectively.

"We are constantly looking for ways to support our strategic agenda, and these structural intitatives will make us more agile, improve our operational efficiency and strengthen our platform for growth ," says Stefan Widing, President and CEO of Sandvik.

Costs related to the restructuring are expected to amount to SEK 1.7 billion, which will be reported as non-recurring costs and reported as items affecting comparability.

Of the total SEK 1.7 billion, approximately SEK 400 million are non-cash items and the remaining SEK 1.3 billion mainly refers to redundancies of some 580 employees in total. Around 60% of the the planned charges will be provided for in 2022 and the remainder in 2023, when the IFRS criteria to do so are fulfilled.

Stockholm, May 17, 2022
Sandvik AB

For further information, contact Louise Tjeder, VP Investor relations, phone: +46 (0) 70782 6374 or Johannes Hellström, Press and Media Relations Manager, phone: +46 (0) 70721 1008.

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SOURCE Sandvik