SANDVIKEN, Sweden — Sandvik Materials Technology (STO:SAND) is divesting its power spring business in Scranton, U.S. and Nogales, Mexico to Lesjöfors AB, a subsidiary of Beijer Alma.
The divested operation is a manufacturer of power spring solutions for a wide range of customer applications in consumer, industrial, construction and medical environments.
Invoiced sales for the business concerned amounted to about $15 million in 2013 and the total number of employees encompassed is approximately 60, of which 40 in the U.S. and 20 subcontracted employees in Mexico. Currently, they form part of the strip, wire and heating technology product area at Sandvik Materials Technology.
The divested operation involves a limited linkage to the rest of the business area and the raw material is sourced externally.
Lesjöfors AB is a Sweden-based international manufacturer of industrial springs, wire and flat strip components. Lesjöfors is a subsidiary of Beijer Alma AB and operates from 21 manufacturing units in ten countries following the acquisition.
“This divestment is in line with Sandvik Materials Technology’s strategy to focus more towards the energy segment and applications related to energy efficiency, and exit businesses considered non-core. We are continuously developing our product portfolio towards even more advanced products and materials for the most demanding industries.”, says Petra Einarsson, President of Sandvik Materials Technology.
The transaction is expected to be finalized by Dec. 31.
Sandvik is a global industrial group with advanced products and positions in selected areas — tools for metal cutting, equipment and tools for the mining and construction industries, stainless materials, special alloys, metallic and ceramic resistance materials as well as process systems. In 2013 the Group had about 47,000 employees and representation in 130 countries, with annual sales of about 87,000 million SEK.
