As part of Sandvik's ongoing efforts to improve operational efficiency and resilience, the company has now decided to implement a new program of restructuring measures that will support the company's strategy and the financial targets it has set.
Among the new measures included in the plan are the consolidation of production units and the optimization of the structure of the organization on a group and global level.
As a result of the program, approximately SEK 1.2 billion will be saved each year. By the end of 2024 and at the end of 2025, there is an expected share of total annualized savings of approximately 80% and 100%, respectively. The majority of the planned savings initiatives are structural in nature, while 15% are volume-related initiatives.
"As a company that is constantly looking for ways to improve its operational efficiency and enhance its resilience, driving efficiency in various ways becomes increasingly important in times of macroeconomic uncertainty. We are always on the lookout for ways to improve our operational efficiency. As a result of these initiatives, we will become stronger and more resilient, as well as better able to capitalize on the growth opportunities that lie ahead," says Stefan Widing, Chairman and CEO of Sandvik.
The restructuring costs are expected to amount to SEK 2.4 billion, which will be reported as non-recurring costs in the first quarter of 2024, and will be reported as items affecting comparability in the EBITA figures.
There are a total of SEK 2.4 billion in losses, out of which approximately SEK 0.7 billion is non-cash items and the remaining SEK 1.7 billion is mainly due to the redundancy of approximately 1,100 employees.
The Sandvik AB company was founded on January 25, 2024 in Stockholm.
Please contact Louise Tjeder, VP Investor Relations, at +46 (0) 70782 6374, or Johannes Hellström, Press and Media Relations Manager, at +46 (0) 70721 1008, for any further information.
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The source of this information is Sandvik
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Source prnewswire