Sandvik Materials Technology to sell welding and stainless wire businesses and create new powder business unit

May 15, 2017

Sandvik Materials Technology has reported that in order to further consolidate its product portfolio and improve its long-term performance, the company intends to divest parts of its wire operations business. A new organisational structure was also announced that will see four new product areas established as Tube, Kanthal, Powder and Strip, from July 1, 2017.

Sandvik stated that its welding and stainless wire businesses are subject to intense competition and it does not hold a No. 1-2 market position. In 2016 the wire businesses, which are to be divested, generated total annual revenues of about SEK 700 million.

“The divestment of the welding and stainless wire businesses will make Sandvik Materials Technology more focused on its core operations; advanced stainless steels and special alloys for the most demanding industries,” stated Petra Einarsson, President of business area Sandvik Materials Technology.

The company added that it plans to retain its Kanthal wire for industrial heating etc. These businesses will be included in the Kanthal product area and are regarded as core businesses due to the strong market positions and growth potential. In 2016 operations now transferred into the Kanthal product area had annual revenues of around SEK 800 million.

“We will continue to develop our core businesses to ensure long term value creation. A new organisational structure is being created, effective as from 1 July 2017, whereby each product area will be responsible and accountable for the entire value chain and its results. The four new product areas will be Tube, Kanthal, Powder and Strip,” added Einarsson.

A charge of SEK -450 million related to the transaction will impact the result for the second quarter 2017. This is primarily impairments related to fixed assets. The cash flow impact from the transaction is expected to be positive.

Recent issue of Powder Metallurgy review - your go-to resource to stay updated on the world of powder metallurgy and metal powders

In the latest issue of PM Review…

PM Review Spring 2023

Download PDF

Extensive Powder Metallurgy industry news coverage, and the following exclusive deep-dive articles and reports:

  • GKN Powder Metallurgy: A strategic vision for the future of permanent magnets for EVs
  • Building trust in the Powder Metallurgy industry: The role of standardisation and an update on recent work by ISO/TC 119
  • High-volume powder production for Additive Manufacturing: SMS group’s continuous metal powder production process
  • Development of enhanced-performance PM brake pads for high-speed trains by Beijing Tianyishangjia New Material Corp., Ltd.
  • The START project: Creating a sustainable supply chain for green energy harvesting products by Powder Metallurgy
  • World PM2022: Reviewing three innovative methods for metal powder production

The latest news from the world of metal powders, delivered to your inbox

Don't miss any new issue of PM Review, and get the latest industry news. Sign up to our weekly newsletter.

Sign up

Join our community

From the industry…

Discover our magazine archive…

The free-to-access PM Review magazine archive offers unparalleled insight into the world of Powder Metallurgy from a commercial and technological perspective through:

  • Reports on visits to leading PM part manufacturers, metal powder manufacturers and industry suppliers
  • Articles on technology and application trends
  • Information on materials developments
  • Reviews of key technical presentations from the international conference circuit
  • International industry news

All past issues are available to download as free PDFs or view in your browser.


Browse the archive


Looking for PM production equipment, metal powders, R&D support and more?

Discover suppliers of these and more in our
advertisers’ index and buyer’s guide, available in the back of PM Review magazine.

  • Powders & materials
  • Powder process, classification & analysis
  • PM products
  • Atomisers & powder production technology
  • Compaction presses, tooling & ancillaries
  • Sintering equipment & ancillaries
  • Post-processing
  • Consulting & toll sintering
Download PDF
Share via
Copy link