Swedish high-technology engineering and steelmaking group Sandvik has announced that it has initiated negotiations with labor unions in Sweden to restructure its wire and resistance strip operations.
According to Sandvik's statement, the restructuring will affect production of wire and resistance strip in Hallstahammar, Sweden, which will be shut down over the next 18 months. Manufacturing of wire products that are not sufficiently profitable will be gradually reduced, while manufacturing of the remaining wire products will be transferred from Hallstahammar to Sandviken.
All strip manufacturing in Sweden will be gathered in one location, with the relocation of resistance strip production in Hallstahammar to Sandviken. As a result of these changes, the workforce in Hallstahammar will be reduced by 100 employees over the next 18 months.
In a separate press release, Sandvik also announced that it will lay off 400 employees globally due to the new strategy to be implemented for the Sandvik Mining and Sandvik Construction business areas.