Sandvik Group to optimise supply chain
The Sandvik Group?s supply chain is to be optimised, reducing the number of production units from the current 150 to 125 over the next three to four years. The initial phase aimed at optimising the supply chain affects about ten production units, predominantly in Europe. Information concerning individual units will be announced on a case-by-case basis. The move targets annual structural savings of approximately SEK 800 million by the end of 2015 at a cost of SEK 900 million to be charged to the fourth quarter. The next phase is expected to be announced and a provision posted in the accounts at the beginning of 2015. Additionally, Sandvik Mining is implementing actions to further adjust costs to current demand. These actions are expected to yield an annual saving of SEK 500 million.