STOCKHOLM, Sweden, Feb. 18, 2002 (PRIMEZONE) -- A review is under way of Sandvik Steel's Wire Division. The Division's profitability is clearly unsatisfactory, due in part to the fact that the overall production capacity is too high. The review shows that the current five production units should be reduced to four in order to improve efficiency, reduce costs and increase profitability. One alternative is to phase out Gusab Stainless AB in Mjolby, Sweden, which in such case would mean that production of spring wire would be transferred to other units in the Wire Division.
Consequently, a work group has now been appointed, comprising representatives of union organizations and the company, with the task of studying the review documentation and discussing various solutions prior to a decision being taken. This work is expected to take approximately two months.
AB Sandvik Steel
Sandvik is a high-technology engineering group with advanced products and world-leading positions in selected areas - tools for metalworking, machinery and tools for rock excavation and processing, stainless steel, special alloys and resistance heating materials and process systems. The Group has 35,000 employees in 130 countries, with annual sales of approximately SEK 50 billion.
Sandvik Steel is a business sector within the Sandvik Specialty Steels Business Area and a world-leading manufacturer of highly refined products, tube, strip, wire and bar, in stainless steel and in special alloys. Annual sales are approximately SEK 10,000 M, with 6,200 employees.
Sandvik Steel's subsidiary, Gusab Stainless AB, manufactures spring wire and has approximately 110 employees.
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