LONDON Swedish industrial conglomerate Sandvik AB has announced further restructuring plans, including the loss of some 950 jobs worldwide.
A total of 650 positions will be cut in its Sandvik Mining division, with facilities in North Bay, Canada, and Rocklea, Australia, slated for closure. A further 350 third-party contracts in the sector will also be cut, it said.
In its Sandvik Machining Solutions division, the company is seeking to generate economies of scale by combining a number of operations. In the United States, that includes closing its Seco Tools Inc. distribution center in Troy, Mich., and shifting that capacity to its Kentucky hub. The unit will also reduce head count in Fagersta, Sweden, among other plans, it said.
The companys wire operations at Sandvik Española, Barcelonapart of its Sandvik Materials Technology divisionwill also be "restructured," with some of its production being moved to other facilities in order to shift its focus to more advanced products, Sandvik said. In total, the materials technology department will shed 220 jobs worldwide, it said.
The construction part of the business will also see 80 jobs cut on the back of "subdued market activity," with a further 180 third-party positions being slashed as well.
"In our drive to continuously improve our company, we have identified several additional opportunities," Sandvik president and chief executive officer Olof Faxander said. "Consequently, decisions have been taken on a number of actions to adjust costs and capacity."
Sandvik expects the cost-cutting efforts to save more than 1 billion kronor ($150.9 million) by the end of 2013.
A version of this article was first published by AMM sister publication Steel First.