Sandvik acquires Austrian tungsten producer

Sandvik acquires Austrian tungsten producer

Sandvik has reached an agreement to acquire Wolfram Bergbau- und Hütten-GmbH
Nfg. KG (WBH), an Austrian producer and supplier of tungsten products. The
acquisition is expected to be completed during the second quarter of 2009, after
approval by relevant anti-trust authorities.

WBH operates a refining plant for producing tungsten carbide, including a
chemical plant for recycling tungsten material, in St. Martin, Austria, where
the headquarter is located. WBH also operates a mine and ore dressing plant in
Mittersill, Austria. WBH is active within the tungsten industry since 1975 and
offers tungsten carbide and tungsten metal powders. Sandvik is part of WBH's
global customer base since many years. WBH's highly qualified R&D-resources have
created an outstanding product quality and offering of unique tungsten carbide
grades. Tungsten carbide is the primary raw material of cemented carbide, and
therefore the acquisition of WBH is of long-term strategic importance for
Sandvik.

In 2008, WBH had sales of approximately SEK 1,800 M and 300 employees. WBH will
be a separate product area in the business area Sandvik Tooling. WBH will
continue to operate independently and develop its business and customer
relationships. Burghard Zeiler will continue as managing director.

“This acquisition complements and strengthens our business. WBH will bring
know-how, technology and capacity for world class production and recycling of
tungsten carbide. It provides us with resources to manage the entire production
process, from ore to finished cemented carbide powder. In this way we will be
able to further strengthen our raw material supply and develop our business and
customer offering,” says Anders Thelin, President of Sandvik Tooling.


Sandviken, 17 February 2009

Sandvik Aktiebolag (publ)


For further information, contact Anders Thelin, President of Sandvik Tooling
business area, +46 26 26 63 84, or Jan Lissåker, Vice President, Investor
Relations, Sandvik AB, +46 26 26 10 23.

Sandvik is a global industrial group with advanced products and world-leading
positions in selected areas - tools for metal cutting, machinery and tools for
rock excavation, stainless materials, special alloys, metallic and ceramic
resistance materials as well as process systems. The Group has about 50,000
employees and representation in 130 countries, with annual sales during 2008 of
SEK 93,000 M.

Sandvik Tooling is a business area within the Sandvik Group and a global
market-leading manufacturer of tools and tooling systems for cutting operations
as well as of wear parts and superabrasive materials. Annual sales in 2008 were
about SEK 26,000 M, with about 17,000 employees. Approximately 4% of sales are
invested in R&D. Products are manufactured in cemented carbide, high-speed steel
and other hard materials, such as diamond, cubic boron nitride and special
ceramics.

Wolfram Bergbau- und Hütten-GmbH Nfg. KG (WBH) is a world-leading producer and
supplier of tungsten (in forms of ammoniumparatungstate (APT), tungsten metal
(W) and tungsten carbide (WC)). The company, which is located in Austria, was
established in 1975. Sales in 2008 was approximately SEK 1,800 M and 300
employees. Sandvik is part of WBH's global customer base since many years. The
mining as well as refining plant operates according to high safety and
environmental standards. WBH holds both an ISO 9001 and an ISO 14001
certificate.