By Kari Williamson

Sandvik Materials Technology has introduced an improvement programme, The Step Change Programme, to increase profitability and to strengthen the business area’s position in key segments.

One of the objectives of the programme is to reduce the overall cost structure by approximately SEK 500 million over a two to three year period, through such measures as reducing costs for staff and administration in addition to cost optimisation of the sales organisation.

As a result of the Sandvik Group’s new strategy and organisation, the Sandvik Mining and Construction business area will be separated into two business areas: Sandvik Mining and Sandvik Construction as of 1 January 2012.

“Our aim is to complete the work as quickly as possible to shorten the period of uncertainty for our employees,” says Jonas Gustavsson, President of Sandvik Materials Technology.

The changes are expected to be completed during the first half of 2012.