SANDVIKEN, Sweden--(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
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 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
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