Sandvik Materials Technology says that it plans to divest the welding and stainless wire parts of its wire operations in order to ‘further consolidate the product portfolio and improve its long term performance.'

In 2016 the wire businesses, which are to be divested, generated total annual revenues of about 700 million SEK.

Sandvik plans to retain its Kanthal wire business for industrial heating. According to the company, these businesses are regarded as core businesses due to the strong market positions and growth potential. In 2016 operations now transferred into the Kanthal product area had annual revenues of about SEK 800 million.

‘The divestment of the welding and stainless wire businesses will make Sandvik Materials Technology more focused on its core operations; advanced stainless steels and special alloys for the most demanding industries,’ said Petra Einarsson, president of Sandvik Materials Technology. ‘We will continue to develop our core businesses to ensure long term value creation. A new organizational structure is being created, effective as from 1 July 2017, whereby each product area will be responsible and accountable for the entire value chain and its results. The four new product areas will be tube, Kanthal, powder and strip.’

This story is reprinted from material from Sandvikwith editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.