Sandvik Materials Technology reaches an agreement to divest its power spring business in US and Mexico
Sandvik Materials Technology is divesting its power spring business in Scranton, US and Nogales, Mexico to Lesjöfors AB, a subsidiary of Beijer Alma.
The divested operation is a leading manufacturer of power spring solutions for a wide range of customer applications in consumer, industrial, construction and medical environments.
Invoiced sales for the business concerned amounted to about 15 million USD in 2013 and the total number of employees encompassed is approximately 60, of which 40 in the US and 20 subcontracted employees in Mexico. Currently, they form part of the Strip, Wire and Heating Technology product area at Sandvik Materials Technology.
The divested operation involves a limited linkage to the rest of the business area and the raw material is sourced externally.
Lesjöfors AB is a Sweden-based international manufacturer of industrial springs, wire and flat strip components. Lesjöfors is a subsidiary of Beijer Alma AB and operates from 21 manufacturing units in ten countries following the acquisition.
“This divestment is in line with Sandvik Materials Technology’s strategy to focus more towards the energy segment and applications related to energy efficiency, 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 by 31 December 2014.
Stockholm, 28 October 2014
For further information contact: Ann-Sofie Nordh, Investor Relations, Sandvik AB, tel +46 8 456 14 94 or Jessica Alm, Executive Vice President Group Communications, Sandvik AB, tel +46 8 456 12 88.
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 three 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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