Sandvik reports that it has reorganized its operations in its Sandvik Venture business area. This includes moving tungsten carbide powder producer Wolfram Bergbau und Hütten and two selected production sites from Sandvik Hyperion into Sandvik Machining Solutions. These businesses are internal suppliers to Sandvik Machining Solutions, and Wolfram supplies raw material through virgin material from the mine, through its recycling operations as well as from third party suppliers. The Sandvik Hyperion production sites supply metal powder and develop round tool blanks.
The company also plans to move Sandvik Drilling and Completions (Varel) into Sandvik Mining and Rock Technology. These companies supply consumables – drill bits and down-the-hole products – to the oil & gas and mining industries. According to the company, drill bit products have the equivalent ‘business logic’ as the products already produced under the Sandvik Mining and Rock Technology umbrella. 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, labelled as ‘other operations’. Sandvik says that it plans ultimately to exit from these businesses, although the process is yet to be initiated. The new structure will be effective as of 1 July 2016.
Total ownership
‘By consolidating operations we will achieve total ownership and accountability for the respective businesses, aiming to improve the long term efficiency in Sandvik,’ said 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.’
As a result of these changes, the Sandvik Venture business area and management team will be dissolved, the company confirmed. Rosengren will have formal responsibility for other operations, while the responsibility for further development of the business will remain with the respective product area management teams. Jim Nixon, current president of Sandvik Venture, will leave Sandvik as of 1 July 2016.
‘I would like to take the opportunity to thank Jim Nixon for his dedicated work in supporting the merger of the new organization,’ said Rosengren. ‘I wish him all the best in his future career.’
This story uses material from Sandvik, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.