Sandvik Fires CEO

Olof Faxander has been ousted as CEO effective immediately, and will be replaced by ship-engine builder Wärtsilä Corp.'s CEO Björn Rosengren, who previously held management positions at Atlas Copco for 13 years.

Swedish cutting tools and mining equipment manufacturer Sandvik announced Monday that it has replaced company President and CEO Olof Faxander.‚Äč

Bj√∂rn Rosengren, currently President and CEO of W√§rtsil√§ Corporation, a Finnish ship-engine builder, will succeed Faxander effective Nov. 1.

Faxander, had been the President and CEO of Sandvik since 2011. 

"He has managed Sandvik through very challenging market conditions and made creditable contributions in the restructuring of Sandvik to a more efficient organization," said Johan Molin, Chairman of Sandvik. "The change of President and CEO was initiated by the Board and should be viewed as a next step in Sandvik‚Äôs further development."

According to Bloomberg, the change comes after a major leadership reshuffle in AB Industrivaerden, Sandvik‚Äôs largest owner, following reports of alleged misuse of corporate jets at Industrivaerden and hygiene products producer Svenska Cellulosa AB. Among those who had to leave in the wake of the scandal were SCA CEO Jan Johansson, Industrivaerden chairman Sverker Martin-Loef, and Sandvik‚Äôs former chairman Anders Nyren.

Rosengren, 56, has led W√§rtsil√§ Corporation, since September 2011. Prior to that he held several management positions at Atlas Copco, in total for about 13 years, in addition he has a strong background from other industrial companies (Nordhydraulic, Nordwin AB, ESAB Group).

"I know Bj√∂rn Rosengren as an exceptionally experienced and successful industrial leader. He has the experience needed to develop Sandvik into the future," Johan Molin said.

"I look forward to joining Sandvik, a well-recognized industrial company with great potential," Rosengren said.

Mats Backman, Executive Vice President and CFO, will be acting President and CEO in the interim period.

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