Sandvik has announced plans to reorganise and consolidate its operations in the Sandvik Venture business area. The new structure, effective July 1, 2016, will see the Sandvik Venture business area and management team dissolved, with Jim Nixon, current President of Sandvik Venture, leaving the company.
The restructuring will include moving Wolfram (Wolfram Bergbau und Hütten) and two selected production sites from Sandvik Hyperion into the Sandvik Machining Solutions business area. These businesses are internal suppliers to Sandvik Machining Solutions. The selected production sites in Sandvik Hyperion supplies metal powder and develops round tool blanks.
Sandvik Drilling and Completions (Varel) will move into the Sandvik Mining and Rock Technology business area. The product offering comprises consumables such as drill bits and down-the-hole products for the oil and gas and mining industries.
Sandvik announced that Sandvik Process Systems and Sandvik Hyperion, excluding the two sites to be merged into Sandvik Machining Solutions, have been identified as non-strategic operations and will remain in Sandvik Venture, now to be labelled ‘other operations’. The company announced that it plans to exit from these businesses, although the process is yet to be initiated.
“By consolidating operations we will achieve total ownership and accountability for the respective businesses, aiming to improve the long term efficiency in Sandvik,” stated Björn Rosengren, Sandvik’s President and CEO.
“For Sandvik Machining Solutions the structural change is driven by achieving total ownership of the supply chain and strengthening the position in the round tools segment. For Sandvik Mining and Rock Technology we consolidate the similar product offering of Rock Tools and Drilling and Completions under the same umbrella. Over time we will exit from the businesses now reported in other operations, making Sandvik even more focused on its core businesses,” added Rosengren.