Sandvik to be number one in all areas

Thursday 1 September 2016

Rosengren Björn 8 webb.jpg

Stability, profitability and growth will dominate the strategy for the next few years for all of the companies in the Sandvik group. “In the end no company does well if it’s not growing,” said Björn Rosengren, CEO of Sandvik for just under a year.

Development in Sandvik’s markets has been very shaky over the past few years. The mining industry has slowed down, as has development in China.

Stagnant markets are a challenge for Sandvik. Efficiency improvement and product development will help industrial corporations pick up speed again.

“We intend to be number one or two in the areas where we operate. If we’re bigger than our competitors we can charge more and invest the money we make in developing our core business,” said Björn Rosengren at an IVA breakfast meeting.

“If a company can’t handle that it should be sold.” Björn stressed that there are no holy cows in the Sandvik group.

The vision is for Sandvik to be the industry standard.

“Customers should think of us first when they need something in one of our product areas.”

Sandvik it not one company, it is 27 –֪ one per product area, all with different situations and conditions.

The 27 product areas are independent; the companies make their own decisions.

“Responsibility is shifted out into the organisation – to the various management teams. Decisions should be taken as close to the customers as possible. The different companies are the ones who understand their customers’ markets.”

But all companies in the group are subject to specific efficiency improvement requirements and are expected to increase their productivity by three percent annually.

“It’s important to do things right. To keep the companies on the same page, we have rules and processes that all of them have to follow.”

Sandvik’s new organisational structure consists of three divisions: Mining & Rock Technology, Sandvik Materials Technology and Sandvik Machining Solutions. From a profitability standpoint the latter is the best. Sandvik Coromant is part of that division.

HR is a prioritised area for Björn Rosengren.

“It's good to be employed by Sandvik. We attract the right people. Job vacancies are announced on the internal website and anyone can apply. Everyone is responsible for their own career within Sandvik.”

Sustainability is also one of Sandvik’s focus areas.

“The goals with respect to how our products and factories impact their surroundings should be tough.”

Half of the material used in new production is recycled.

Around 40 percent of the Group’s net sales are generated in Europe. And Sweden and Sandviken are important to the company.

“But the fact that the head office is in Stockholm doesn’t matter. That’s not where the customers come to. Sandviken is where the operating units’ head offices are located. The customers aren’t interested in where my office is,” he said.

See the seminar (Swedish) 


Author: Pär Rönnberg