Swedish high-technology engineering and steelmaking group Sandvik has announced that it will launch a comprehensive improvement program to increase profitability to a significantly higher and sustainable level and to strengthen its leading position in key segments.
According to the planned improvement program, Sandvik aims to have a simplified and more cost-efficient organizational structure, improved productivity and increased flexibility and significantly reduced cost structure. One of the objectives is to sustainably reduce the overall cost structure by approximately SEK 500 million ($74.3 million) over a two-year period.
Sandvik also wants to shift the product mix towards more advanced and profitable products, taking a more aggressive approach. Another aspect of the program is to ensure selective growth to ensure leadership in profitable key segments.