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