Sandvik to Separate Materials Technology Unit, Explores Listing

By Dominic Chopping

STOCKHOLM--Swedish industrial-equipment supplier Sandvik AB (SAND.SK) said Monday it will separate its Sandvik Materials Technology unit and explore a listing of the business.

"The intention is to increase Sandvik Materials Technologys structural independence from the Sandvik Group and thereby put greater focus on the business future development possibilities as well as create flexibility," the company said.

The separation and preparation for a possible listing is expected to take at least a year, it said, and there is no guarantee that a decision to finally list Sandvik Materials Technology will be taken.

More details will be provided in due course.

The company's Materials Technology unit manufactures advanced stainless steels and special alloys. Products include tube, pipe, bar and strip steel as well as products for industrial heating.

In 2018, the unit generated 15.11 billion Swedish kronor ($1.58 billion) in revenue, representing 15% of the group total.

Write to Dominic Chopping at [e-mail]; @domchopping @WSJNordics

(END) Dow Jones Newswires

May 06, 2019 07:38 ET (11:38 GMT)

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