Sandvik Materials Technology Divests Its Distribution Business in Australia and New Zealand
September 02 2014 - 1:07AM
Business Wire
Sandvik Materials Technology is divesting its distribution
business in Australia and New Zealand to Vulcan Steel Ltd.
The divested operations include leading processors and
distributors of stainless steel products and other corrosion and
wear-resistant products in Australia and New Zealand.
Invoiced sales for the business concerned amounted to about 930
million SEK in 2013. The operating margin was 7% and the total
number of employees encompassed is 190, of which 125 in Australia
and 65 in New Zealand. Currently, they form part of the Tube
product area at Sandvik Materials Technology.
The divested operations involve a limited linkage to the rest of
the business area, with a very small part of the total sales coming
from Sandvik’s own production system. The divestment does not
impact the other Sandvik business areas in these countries.
Vulcan Steel Ltd is a privately owned steel distributor with
operations in Australia and New Zealand, including 22 facilities
working in long product distribution, coil processing, and plate
service. As part of the transaction, a distribution agreement has
been put in place between Sandvik and the new owner, to enable
continued deliveries of Sandvik Materials Technology products to
the region.
“This divestment is well in line with Sandvik Materials
Technology’s strategy to focus on attractive segments, such as
energy, and exit businesses considered non-core. We are
continuously developing our product portfolio towards even more
advanced products and materials for the most demanding industries,”
says Petra Einarsson, President of Sandvik Materials
Technology.
The transaction is expected to be finalized in October 2014.
Stockholm, 2 September 2014
Sandvik Group
Sandvik is a global industrial group with advanced products and
world-leading positions in selected areas – tools for metal
cutting, equipment and tools for the mining and construction
industries, stainless materials, special alloys, metallic and
ceramic resistance materials as well as process systems. In 2013
the Group had about 47,000 employees and representation in 130
countries, with annual sales of about 87,000 million SEK.
Sandvik Materials Technology
Sandvik Materials Technology is a business area within the
Sandvik Group and a world-leading manufacturer of high value-added
products in advanced stainless steels, special alloys, as well as
metallic and ceramic resistance materials for the most demanding
industries. Its cutting-edge expertise is based on an integrated
production platform and world-leading metallurgy and R&D.
Operations are divided into four product areas: Tube, Strip, Wire
and Heating Technology as well as Primary Products. In 2013 sales
were about SEK 14,000 million SEK with 7,100 employees
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Sandvik ABMagnus Larsson, +46 8 456 12 40Vice President Investor
RelationsorPär Altan, +46 8 456 12 37Vice President External
Communications
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