Sandvik Materials Technology to separate from the Sandvik Group
May 8, 2019
Sandvik AB, Stockholm, Sweden, is to initiate an internal separation of its business division Sandvik Materials Technology. The decision was made by Sandvik’s Board of Directors with the reported aim of increasing the structural independence of Sandvik Materials Technology from the Sandvik Group. It is expected that this will put a significant focus on the business’ future development possibilities, as well as creating flexibility.
According to the company, the separation is expected to take at least a year, with no guarantee whether a decision to list Sandvik Materials Technology at the Nasdaq Stockholm Exchange will be taken. “The decision to initiate an internal separation of Sandvik Materials Technology is based on the board’s belief that each part will develop more favorably by itself, increasing opportunities for profitable growth and improving long-term shareholder value,” stated Johan Molin, Chairman of the Sandvik Board of Directors.
“Sandvik Materials Technology represents the origin of Sandvik and great businesses have sprung out of it to shape the current structure. It is my view that a separation will allow full focus on Sandvik Materials Technology’s key strengths and its further improved performance,” commented Björn Rosengren, President and CEO of Sandvik.