SANDVIKEN, Sweden, Sept. 3, 2002 (PRIMEZONE) -- Sandvik Steel has decided to intensify the ongoing program of change through a review of the organizational structure at the main facility in Sandviken. The aim is to improve the unsatisfactory profitability through reduced costs, enhanced efficiency and increased flexibility.
As a result of this action, the number of salaried employees in Sandviken is expected to be reduced by 140 positions. Wage earners in positions in which the job content is mainly administrative in nature may also be affected. Negotiations with the unions are being initiated immediately. The union organizations as well as the county employment board were notified today.
A very sharp focus will also continue to be made on increased productivity at the production facilities in Sandviken. Capacity utilization shall increase by at least 20%.
"Sandvik Steel's profitability is still insufficient, particularly in Sandviken. Costs must be reduced and efficiency increased to be able to achieve profitability goals and ensure a long-term positive development of the company," said Peter Gossas, President of Sandvik Steel.
Sandviken, 3 September 2002
AB Sandvik Steel
For additional information, please contact:
Peter Gossas, President of Sandvik Steel, tel +46 26 26 40 56.
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, stainless steel, special alloys and resistance heating materials and process systems. The Group has 37,000 employees in 130 countries, with annual sales of approximately SEK 55,000 M.
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 special alloys. Annual sales are approximately SEK 10,000 M, with about 6,000 employees, of which about 840 salaried employees and 2,760 wage earners in Sandviken.
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
www.waymaker.net/bitonline/2002/09/03/20020903BIT00350/wkr0001.doc www.waymaker.net/bitonline/2002/09/03/20020903BIT00350/wkr0002.pdf