Swedish high-technology engineering and steelmaking group Sandvik has announced that it has identified additional structural efficiency measures which will generate annual savings of about SEK 600 million ($70.77 million), including the third and final phase of its supply chain optimization program.
The company stated that the total supply chain optimization program will reduce the number of production units by 23, in line with the original target for continuing operations. The additional measures are structural and are taken to improve long-term internal efficiency.
Due to a review of phase two of Sandvik Mining’s supply chain optimization program, Sandvik has released cost provisions of SEK 169 million ($19.95 million). The targeted savings for the total supply chain optimization program are SEK 1.3 billion ($153.43 million) for continuing operations.