SANDVIK# 1-2020 A CHALLENGING START - Sandvik Group
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MEET # 1-2020
SANDVIK
SANDVIK GROUP MAGAZINE
A CHALLENGING
START
“I’m convinced that when we work together with our
customers, partners, and suppliers, Sandvik will suc-
cessfully get through these difficult times.” Meet the
new President and CEO of Sandvik, Stefan Widing
PAGE 6
FOCUS: 5G ON THE RISE • Student solar panel project
Sanitation in Tanzania • MICROFACTORIES IN A BOX
NEW RECYCLING PROGRAM • Interview: Jennifer Allerton
CUSTOMER RELATIONS RECYCLING ENERGY
USA. Sandvik Coromant has NETHERLANDS.. Strategic SWEDEN. Göranssonska Technical
opened a customer center in business partner Stamicarbon High School in Sweden includes solar
Mebane, North Carolina. has tested a new buy-back panels in its education.
PAGE 4 program for steel. PAGE 3
PAGE 18
3
4 18 20
FUTURE BUSINESS
FOCUS. 5G networks and
24
devices are about to take
off in 2020. How will it
drive change to the COMMUNITY INVOLVEMENT LIFE SCIENCE
business and industries? TANZANIA. Engineers Without JAPAN. Medical wire from Sandvik
PAGE 10 Borders and Sandvik have played a crucial part in a premature
constructed toilet facilities in birth baby’s survival.
local schools. PAGE 20
PAGE 24
CONTENT#1-2020
Follow us on social media and find more
stories at: home.sandvik/meetsandvik
MEET SANDVIK: A Sandvik Group magazine
PUBLISHER RESPONSIBLE UNDER SWEDISH PRESS LAW: Jessica Alm
EDITOR-IN-CHIEF: Marita Sander PRODUCTION: Spoon Publishing AB
WRITERS: Jonas Rehnberg , Cari Simmons, Danny Chapman, Peter Wiklund, Susanna Lindgren
PRINT: Falk Graphic DATE OF PRINT: May 2020
Published in Swedish and English, in printed form and at our website home.sandvik
DISCLAIMER EMAIL: marita.sander@sandvik.com. Copyright © 2020 Sandvik Group.
Some images within All Sandvik trademarks mentioned in the magazine are owned by the Sandvik Group.
this magazine were PHOTO: Stefan Estassy, Sandvik, James Tye, Samuel Unéus, Alamy, Shutterstock, iStock, TTBild
produced before
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2 MEET SANDVIK #2–2019
#1–2020
NEWS
MEET THE PRESIDENT
of Sandvik Coromant in our podcast
series. When Belgian Nadine
Crauwels took on the role, the
company welcomed the first
non-Swede and first woman to
the position. Find it where
podcasts are found, or at
home.sandvik/en/stories/podcasts
The Meet Sandvik magazine will be published
twice a year, instead of the previous three editions.
All year round you'll find our best stories at:
home.sandvik/stories
Alfred Kaskela,
Moa Karlsson, and
Oscar Persson at
Göranssonska Tech-
nical High School
in Sandviken study
the effects of solar
power.
”THIS IS FOR REAL!”
HOW DO YOU make sustainability more than a the best way to learn,” says student Moa Karlsson.
buzzword? At Göranssonska Technical High “This is for real,” says fellow student Oscar
School in Sandviken, Sweden, where Sandvik is a Persson.
majority owner and which bears the name of Mats W. Lundberg, Sustainable Business
Sandvik’s founder, Göran Fredrik Göransson, the Manager, Sandvik Materials Technology adds:
answer is on a roof where 330 solar panels were “Educationally, the project involves science,
recently installed. The panels are forecast to technology, economics, innovation and more. Stu-
provide 12 percent of the school’s annual dents can choose which angle to pick and base
electricity needs, but the point of the installation is their studies on real and live facts. It is close
including the reading and measurements in the encounters with impactful technology rather than
student projects on solar energy. buzzwords that enable young people to truly
“There is so much talk about sustainability. That understand the opportunities and challenges
is good, but you want to work with it, live it. That is involved in creating a sustainable world.”
MEET SANDVIK #1–2020 3
NEWS | and short facts
PURCHASING POWER
IN 2019 SANDVIK ANNOUNCED a total of nine
Thermaltek designs and
company acquisitions, four of them end 2019/ manufactures customized
early 2020. Thermaltek is a manufacturer of high high temperature furnaces.
temperature furnace systems and metallic
heating elements headquartered in North
Carolina, USA. Sustainable industrial heating is a
strategically important growth area to Sandvik’s
Kanthal division.
Sandvik also acquired Summerill Tube
Corporation, a manufacturer of high precision
tubes based in the US. Since 1892, Summerill has especially for the aerospace industry and the US
delivered seamless and welded tubing in stainless channel partner market.
steels and nickel alloys to highly demanding In Mexico, Sandvik agreed to acquire the
industries including aerospace, transportation cutting tools division of Quimmco Centro
and petrochemical. Tecnológico (QCT). The acquisition enhances
Sandvik also reached an agreement to acquire Sandvik’s capabilities on the growing Mexican
US-based Melin Tool Company, a manufacturer of market, serving customers in a wide range of
solid carbide tools. The acquisition further industries, including aerospace, automotive,
strengthens Sandvik’s round tool offering, energy and transportation.
CHIEF TECHNOLOGY OFFICER OF THE YEAR. Jani Vilenius, Director
for Research and Technology Development at Sandvik Mining and Rock
Technologies, has won the CTO of the Year 2020 Award in Finland. The jury
consisted of leading Finnish technology influencers and behind the award stands
Technology Industries of Finland, Business Finland and consultant Spinverse.
Read more about Jani Vilenius on page 14.
CENTER NUMBER 20
AT THE END OF THIS YEAR, a new Sandvik
Coromant Center will open up in Mebane,
North Carolina, in the United States. Sandvik
Coromant has 19 such centers spread out all New York
over the world where participants get
hands-on experience from skilled experts on
state-of-the-art machines and digital Mebane
machining techniques. The tool manufacturer Los Angeles
already has a production unit in Mebane, an
area heavy with aerospace and automotive
manufacturing.
Miami
4 MEET SANDVIK #1–2020
NEWS | and short facts
AWARDED
CAMPAIGN
The branding campaign Let's Create where
Yngwie Malmsteen failed to break the
world's first 3d-printed smashproof guitar
generated a hugh
interest. It has also
received several awards,
such as the Swedish "The
100 Watt" and the Magnet
Award.
A NEW GENERATION
OF TALENTS ONBOARD
The fourth 18 months Global Garduate Program,
Sandvik’s global trainee program, started in October
2019. Ten young professionals from China, India,
Finland, Sweden, and US will get to explore and know
the company, and after the program be offered a
position in on of the business areas.
NEW TITANIUM “Access to young talent with new skill sets and
outlooks on the world is critical for our success as a
POWDER PLANT company,” says Anna Larsen, Program Lead at
Sandvik.
INAUGURATED
DEMAND FOR TITANIUM powder for additive
manufacturing is increasing. To meet this
demand, Sandvik inaugurated its highly auto-
mated titanium powder plant in Sandviken,
Sweden, late last year.
“The additive process results in far less material
waste than traditional subtractive techniques,
while also encouraging new
levels of design freedom,”
says Mikael Schuisky, Head
of R&D and Operations at the
Additive Manufacturing
division in Sandvik.
MEET SANDVIK #1–2020 5
NEWS | MEET THE PRESIDENT
A challenging start
Stefan Widing’s first months as President and CEO
of Sandvik have been eventful. The new Coronavirus
is affecting the whole community and Sandvik is fully
focused on adapting its operations to the new conditions.
But Stefan Widing is convinced that collaboration and hard
work will successfully get the company through the
pandemic.
How has Sandvik been affected by the example through reduced working hours for
coronavirus so far? employees. But, we are also looking at long-term
"During the first quarter of 2020, we saw limited structural measures if the business climate
impact but it will be more challenging moving continues to be challenging. All divisions have
forward, with the world economy reeling, reduced contingency plans, which they are now putting into
demand as well as closed factories and borders. practice. Some measures will be tough but they
To address the effects of the pandemic, we are are necessary. I am convinced that when we work
taking extensive measures." together with our customers, partners and
What are these measures? suppliers, Sandvik will successfully get through
"The first step is short-term savings, for these difficult times."
6 MEET SANDVIK #1–2020
develop the technology. The big challenge lies in
STEFAN WIDING finding new flexible working methods and
Background: Joins Sandvik after thirteen ensuring good customer experiences. This
years working at Assa Abloy, most recently as requires a structure that supports the business
manager of the HID Global division. Holds a
and the development of new business models
Masters in engineering, specializing in
that help the sales teams to sell new solutions.
physics and electronics, as well as a Bachelor
degree in Business Administration. This is what will determine if we are successful in
Leadership style: Believes in decentraliza- the digital transformation, and it is an area where I
tion and allowing a lot of freedom and can contribute."
responsibility. Results-oriented, structured
Sandvik has been in the process of decen-
and analytical.
tralizing its corporate structure since 2016.
Family: Wife, two sons and a labradoodle.
Interests: Spending time with family and What do you think about this?
taking the kids to their sporting activities. "I’m convinced that a decentralized business
When time allows it, reading books, listening model is the right way to go and we will continue
to music, going to the gym and walks.
moving in the same direction. Decisions will be
better and faster when they are made closer to
the customer and our operational responsibilities
What are your first impressions of Sandvik? should lie there too."
"In the first month, before the coronavirus, I What are your views on sustainability in
spent a lot of time getting to know our different business?
business operations and meeting as many people "I’m impressed by Sandvik’s sustainability work
as possible. I’ve visited our plants in Sweden, and we will continue to integrate sustainability
Finland, Germany and the US. I have gained a even further in our operations. Being a leader in
deeper insight into how extremely exciting and innovation and sustainability is key to attracting
global Sandvik is, with great technology, highly the right talent, to remaining our customers’ first
competent employees and strong market choice and to continuing to be of interest to
positions." investors."
You have a solid technical background. What
are your thoughts on what we need to do in
order to be at the forefront of technology and
digitalisation?
"I believe that the technological leadership of COUNTERMEASURES
Sandvik is crucial if we are to maintain our position In March, Sandvik communicated a number of
as the customer’s first choice. We must be measures to counteract the effects of the
coronavirus pandemic. Short-term measures,
leaders within our core business, whether it be
such as reduced work hours, fewer consul-
cutting tools, new ways of developing mining
tants and other cost savings, are expected to
technology or materials expertise. We must also generate savings of around SEK 1.5 billion in
continue to develop and expand new business 2020. It is estimated that the long-term
models and digital technologies, and I know that structural measures that have been initiated
will result in costs of SEK 1.4 billion this year
we already have a number of ongoing initiatives.
but savings of SEK 0.9 billion per year
This is something I will focus on further."
onwards, with the full impact likely to be seen
Can you see any obstacles to achieving by the end of 2021. In addition, at the Annual
this? General Meeting in 2020, it was decided that
"I don’t think that the technology is going to be no dividends will be paid out to shareholders.
difficult. We can, like most other companies,
MEET SANDVIK #1–2020 7
8 MEET SANDVIK #1–2020
#2–2019
GO TO THE FLOW
Next time you go down the Avenue des Champs-Élysées
in Paris, make sure to admire the fountains on the Rond-
Point des Champs-Élysées-Marcel-Dassault, a Swarovski
crystal-studded work of art made possible with tubing
from Sandvik.
The tubes are used inside the three suspensions, set with
the luminous crystal links, as well as in the underground
water supply systems, and were installed by Atelier BLAM
Lemunier & Meyer in 2019.
Atelier BLAM was so satisfied with the quality of Sandvik
tubes that it has entrusted us with a new order for an on-
going fountain project in Rennes, in western France.
“When it comes to stainless steel, we only work with Sand-
vik,” says a representative of Atelier BLAM. “We know that
their tubes are worry-free in all regards: mechanical prop-
erties, corrosion resistance, tolerances on dimensions and
external appearance.”
MEET SANDVIK #1–2020
#2–2019 9
FOCUS FOCUS | Artificial Intelligence TIME TO UNLOCK 5G’S POTENTIAL In 2020, the roll-out of 5G networks are expected to take off. It’s time then for companies to start driving the changes to industry and society that the new technology can bring, says 5G experts. 10 MEET SANDVIK #1–2020
FOCUS | Artificial Intelligence
MEET SANDVIK #1–2020 11FOCUS | 5G
“5G IS HAPPENING NOW,” says production benefits. These include the
Rowan Högman, a Research Leader for ability to use sensors that measure gas
5G Industry Collaborations at Ericsson. in the air, movement in the mine walls
“Today we have 25 live networks across and wear and tear on the equipment
the world, and this year will see an itself so that maintenance can be
explosion of devices coming out.” scheduled without causing disruption.
5G, compared with 4G, provides phe- The remote operation of transportation
nomenally improved bandwidths and and equipment could improve produc-
much lower latencies, which means far tivity and reduce the need for people to
less delay between connections. “We actually be in the mine.
can’t yet imagine all the different ways
that 5G could change society and busi- IN THE FUTURE, Högman suggests,
ness,” Högman says. “But whenever the low latency of 5G could also allow
you introduce new technology, that for equipment to be operated from cen-
means fundamental change. People will tral points that serve multiple locations.
start thinking differently and introducing This would increase the efficiency of
things in different ways.” machine operators, a scarce resource
Most of the 5G networks that are live today in mining, but also in industries
today are in the U.S., Europe, the Middle such as agriculture, forestry and con-
East and East Asia, where people are struction.
already starting to use 5G phones. With many automation and IoT use
More European countries are expected cases, including mines, 4G technology
to roll out networks this year. is enough to get started with, Högman
says. “It just becomes even better with
CONSUMERS LIVING IN big cities 5G,” he says. “And 5G has brought
will be among the first to benefit. “The awareness of what can be done in
places where lots of people are gath- industry, from managing thousands of
ered at one time are the hot spots that energy-efficient sensors to controlling
motivate investment,” Högman says. wireless robots with one network.”
But 5G could also change the way that Ericsson in fact expects 4G and 5G
millions of factories, transportation to complement each other. In 2025, for
systems and power networks around example, the company expects there
the world operate. to be some 9 billion mobile subscrip-
And 5G’s lower latency, in particular, tions, 25 percent of which will be 5G; 25
could have a big impact in the world of percent will be 2G and 3G together, and
automation and the Internet of Things the remaining 50 percent will be 4G.
(IoT). This is because of the improved
safety, positioning, device density and FOR INDUSTRY IN particular, a 5G
reliability that minimal delay will mean ecosystem with relevant devices still
for operating equipment and transpor- requires further development, Högman
tation remotely. says. There are, for instance, 1.3 billion
Connectivity in mines, for example, IoT connections worldwide. This is
could bring numerous safety and expected to grow to around 5 billion
12 MEET SANDVIK #1–2020FOCUS | 5G
5G creates a huge potential
for organizations to employ
more wireless technology.
“We can’t yet imagine all the different ways that
5G could change society and business.”
by 2025. But in the manufacturing start adding other services that you will
industry only 5 percent to 10 percent benefit from as well.
of new connections today are wire- “And don’t wait,” he continues. “There
less. This creates a huge potential for is so much learning to acquire along the
organizations to employ more wireless way, and you get so many ideas when
technology to create innovative con- you start testing things. And start bring-
nected products, improve production ing in partners, because you will gain
processes with increased flexibility and from a well-functioning ecosystem,
drive down costs. with operators managing the networks
“Try to establish what will really and companies providing software
make a difference to start with,” says and devices for the different functions
Högman. “From there you can see the that you need. The way to be in the
tangible business benefits of introduc- forefront of driving these developments
ing wireless communications. Once is to start building these competences
you have the network, then you can now.”
MEET SANDVIK #1–2020 13FOCUS | 5G
THE BACKBONE
OF INDUSTRY 4.0
With the onset of 5G, the backbone for a long-predicted,
data-driven “fourth industrial revolution” is finally
becoming a reality.
ALTHOUGH 2019, was the year that
new 4G networks regularly were rolled
out, industry is already racing toward
the future. 5G is predicted to bring
improved performance to connected
systems. This means that industry will
be able to glean infinite intelligence
about its operations that will provide
critical insights into how to make
improvements. 5G will, for example,
offer manufacturers an opportunity to
build smart factories that can adapt to
changing market conditions. It will make
a genuine difference to the bottom line.
“Data already drives many industries “Improved connectivity is needed to
truly utilize the data and add business
today, but it will drive all industries in
value,” says Jani Vilenius, Director of
the future,” says Jani Vilenius, Direc- Research and Technology at Sandvik.
tor of Research and Technology at
Sandvik. “And it’s what you do with
data that counts. If our customers designed from the ground up for data
are to succeed, they need intelligent connectivity that is the real game
equipment that is able to interface with changer. Faster connectivity and low
their systems and add true business to no latency will unlock operational
intelligence.” benefits in every industry on the planet.
And with test systems now in place,
INDUSTRY 4.0 WAS supposed to those operational benefits are becom-
bring about these benefits. But turning ing clear.
the idea of a collaborative, adaptive, “Improved connectivity is needed to
real-time industrial digital system into truly utilize the data and add business
reality needed a truly agile communica- value,” says Vilenius. “When we add
tions infrastructure. more artificial intelligence, machine
And it is the fact that 5G has been learning and voice/image recognition
14 MEET SANDVIK #1–2020FOCUS | 5G
Sandvik’s test mine in Tampere, Finland, is already 5G compatible.
into everyday systems, the bandwidth and 5G technology at the Sandvik test
requirements mean 5G is inevitable to mine in Tampere, Finland.
leverage the new capabilities.” The increasing capabilities of smart
The improvements to network devices, and the factories that make
latency are necessary for the effec- them, will also blur formerly clear
tive use of autonomous robotics industry boundaries. Traditional man-
technology as well other innovations ufacturing companies may soon find
such as wearables and virtual reality. that they are competing as part of a
It will give applications and devices much broader automation industry, for
the ability to communicate in close example, which will likely result in new
to real time. This should ease the business models.
safety concerns around areas such
as autonomous vehicles, which will be “IT IS THE market that will drive what
able to constantly communicate with we offer, so we need to be smart and
the ever-changing environment around flexible,” says Vilenius. “At the moment
them. we are working with 4G and 5G LTEs. It’s
4G LTE that customers are asking for
THIS WILL ALSO have a significant today. But we’re certainly not ignoring
impact on mining operations. And 5G. It will be up to 100 times faster than
Sandvik, in partnership with Nokia, is set 4G and consume less power. But it’s
to develop solutions based on private important to get the processes in place
4G LTE (long-term evolution, a wireless using the 4G LTE hardware now, and
standard also known as Advanced 4G) which will be upgraded to 5G in time.”
MEET SANDVIK #1–2020 15FOCUS | 5G
For many Sandvik customers, the key
to getting the most out of 5G will be
finding the right balance between the
old and the new.
PROMISES AND CHALLENGES
FOR HEAVY INDUSTRY
The arrival of 5G has been much anticipated in a variety of sectors and is
expected to revolutionize everything from cars to medical equipment.
THE MANUFACTURING indus- For many of Sandvik’s cus- ries a lot of promise,” he says.
try is expected to reap major tomers, the key will be finding
benefits from the new indus- the right balance between the ONE OF THE biggest benefits
trial internet, which will deliver old and the new, says V. R. Vijay of 5G is the increased band-
lightning-fast speeds, vastly Anand, Head of Digital Machin- width, which enables networks
improved reliability and much ing at Sandvik Coromant. to process up to 20 gigabytes
lower latency, or communication While 5G could one day make of data each second, while
response time. factories less reliant on having reducing latency down to a
Sandvik is already working their own local networks, Anand millisecond.
with its major partners and cus- expects that phase-out to be a But Anand points out that few
tomers to find ways to maximize gradual process and says things industrial manufacturers actually
the benefits of next-generation won’t change overnight. need that kind of bandwidth,
networks. “There’s no doubt that 5G car- and that using 5G for process-
16 MEET SANDVIK #1–2020FOCUS | 5G
“When it comes to creating a road map for new technology,
we always focus on how we can adapt these innovations
into our own solutions so we can help our customers.”
ing smaller amounts of data on its promises for reliability and
wouldn’t be cost-effective. So latency, then maybe one day
many manufacturing companies things will change.”
will still rely largely on local net- That may sound like a cau-
works for connecting their own tious approach, but Anand is
assets and for local automation. quick to point out that 5G will
bring plenty of benefits and new
“A LOT OF what we do with possibilities even for industrial
our data analysis is based on companies.
high-precision and quick-de-
cision kinds of solutions, and FOR SANDVIK COROMANT,
much of that needs to be done the evolution of the IoT will lead
close to the machine before V. R. Vijay Anand, Head of Digital
to better solutions and more
it can even get into a telecom Machining at Sandvik Coromant. efficient products and services
network or the cloud,” Anand helped by sensor-embedded
says. “At least to start with, my assembly lines can be mislead- tools and machines generating
prediction is that many factories ing when it comes to heavy real-time machining information
will still use local network solu- industry and manufacturing. that can complement other
tions when it comes to edge machining information. It is all
automation, and only leverage “MACHINE AUTOMATION is about data and availability of
wide area networks when there a key part of the industry today high-quality data at the right
is a need for multi-site integra- and in the future,” Anand says. time in the right place. Reliable
tion. Another option could be “But when we talk about auto- communication is key for this.
to leverage narrow-band IoT mation of machines in factories, “It’s about getting real-time
technologies, which are much it will predominantly happen information about tools and
more efficient in terms of energy with local networks. If I have five then applying that knowledge
consumption, and then latch machines in a line delivering a and our experience to improve
that onto a 5G network when it job, I would be more confident efficiency and productivity and
comes to taking the data out of connecting them to a local reducing waste for our custom-
the local network. So it’s not one network and automating those ers,” Anand says.
or the other, it’s a combination.” operations rather than connect- ”When it comes to creating a
That same type of thinking ing them through a telecom road map for new technology
also applies to machine auto- network. This is in part because and innovation, we always focus
mation, he says. The talk about of the control that it gives you, on how we can adapt these
how 5G will help make vehicles and in part because of the real- innovations into our own solu-
and other machines autono- ity of how communications work tions so we can actually help our
mous and create fully robotized in the factory. But if 5G delivers customers,” Anand says.
MEET SANDVIK #1–2020 17SUSTAINABILITY | Recycling
The buy-back program helps make the building and operation
of Stamicarbon urea plants more sustainable. Above, a part of
a urea plant about to be recycled.
NEW PROGRAM FOR
RECYCLING OF STEEL
A new project has been initiated by Sandvik and strategic business partner
Stamicarbon to recycle high-alloy steel. A special buy-back program for
customers is replacing equipment at their plants.
IN THE FALL of 2019, Sandvik and strategic back program,” says Oscar Johansson, Global
business partner Stamicarbon began a new proj- Product Manager Fertilizer Tubing at Sandvik
ect aimed at customers in the fertilizer segment, Materials Technology.
providing them with a special buy-back option The idea is that when customers in the urea
when they replaced equipment at their plants. industry replace new equipment at their plants,
Sandvik and Stamicarbon would then demolish Sandvik decommissions the old equipment and
the equipment and recycle the component mate- recycles the materials. In this win-win model,
rials, in particular a type of high-alloy steel used in customers get their equipment replaced without
the urea industry. extra intermediaries and Sandvik and Stamicar-
“I believe that we are unique within the fertilizer bon get to buy back material in the special alloys
segment to offer our customers this kind of buy- they want.
18 MEET SANDVIK #1–2020SUSTAINABILITY | Recycling
“We wanted to find out whether we can extract valuable
materials and demolish equipment on site, in a way that’s
rewarding for all stakeholders.”
“When piloting this idea, we wanted to find achieving this ambition and to help make the
out whether we can extract valuable materials building and operation of urea plants more
and demolish equipment on site, in a way that’s sustainable,” Dobrée says. “We also see this as a
rewarding for all stakeholders,” says Joey Dobrée, valuable addition to our full lifecycle service, one
Product Portfolio Manager at Stamicarbon. that will certainly separate us from competitors.
We will help our clients by taking the hassle out of
THE BUY-BACK concept also goes totally in line the disposal of old equipment, and we can wrap
with Sandvik’s sustainability goal of reaching 90 this service into our proposals for replacement
percent circularity in the production. By buying equipment, bringing benefits for all parties.”
back its own premium material, the exact con-
tents of scrap can be known, which improves the APART FROM THIS program, Sandvik is pro-
raw material handling in the steel mill. Partnering actively reaching out to old customers with an
with Stamicarbon is also a perfect match, as offer to buy back material from urea plants that
sustainability is as important for Stamicarbon as it are now shut down.
is for Sandvik. “I’m very confident in this way of working, it ben-
“Stamicarbon wants to support Sandvik in efits all involved parties,” Johansson says.
BUY-BACK OF SAFUREX MATERIAL LONG TERM
Safurex® high-alloy duplex stain- offerings to fertilizer customers also evaluate how well our Safurex
less steel is made to withstand the when replacing equipment at their material suits the application.”
corrosive environments present in plants. The companies are also Safurex was developed in a
the urea process. The material is exploring how to cooperate on cooperation between Sandvik
targeted in a program Sandvik and standardizing the collection and and Stamicarbon. The fourth and
strategic business partner Stami- recycling of high-quality metals latest generation of the material,
carbon have initiated to buy back going forward. Safurex Star, went on the market
equipment from customers in the The heat exchanger that was in 2018.
industry and recycle component bought back happened to be the “It was very interesting to com-
materials. same heat exchanger used for the pare the difference between the
In October 2019, the first heat very first test installation of Safu- tubes used,” Oscar Johansson at
exchanger was bought back from rex tubes. “It was an extra bonus Sandvik comments. “After careful
a urea plant in the Netherlands. that the heat exchanger was built analysis, we could see that our
The outcome was very positive, with those specific tubes,” says tubes could have managed five
and Sandvik and Stamicarbon Johansson. “Not only could we try to ten more years, but the tubes
have already decided to include out our new buy-back program, made from another material were
the buy-back solution in all new but we had the opportunity to totally worn out.”
MEET SANDVIK #1–2020 19LIFE SCIENCE | Neo-natal care
Ryusuke Sekino weighed only 258 grams when he was born, but survived with the help of modern technology.
SANDVIK WIRE HELPED A
258 GRAM BABY SURVIVE
A Japanese baby boy weighing only 258 grams is now home and star-
ting his life, thanks to medtech innovations. A neurally adjusted venti-
lator assistance from Getinge incorporating Exera® precision medical
wire from Sandvik played a crucial role in the baby’s lung development
and thus his survival.
WHEN TOSHIKO SEKINO gave birth to a tensive care unit every night, but that specific
baby boy at Nagano Children’s Hospital in night three more doctors came in to provide
Japan, after only 24 weeks and five days of support.”
pregnancy, the boy weighed only 258 grams, The baby, named Ryusuke, spent his first
or 9.1 ounces. Neonatologist Ryo Itoshima was months at the hospital, assisted by
on duty the night of the birth. various life-saving mechanical ventilators, such
“I got really worried when the obstetrician as NAVA ventilation – an innovation by the
told me that the estimated body weight of the Swedish medtech company Getinge where the
baby was less than 300 grams,” he recalls. patient’s own respiratory drive controls timing
“Two duty doctors work in our neonatal in- and ventilator assistance. Exera precision
20 MEET SANDVIK #1–2020 LIFE SCIENCE | Neo-natal care
wire from Sandvik is used in this application to 7.5 pounds). The boy is believed to be the
detect diaphragm activity and deliver breaths smallest baby boy ever born who was eventu-
in synchrony with the patient’s own respiratory ally able to leave the hospital in good health.
drive. “We are very happy that we could help
“Non-invasive NAVA supported the baby’s them,” says Itoshima. “It is truly my favorite
own respiration well and helped his weight gain moment at work – when a baby leaves our
and lungs to develop, especially after extuba- hospital healthy and the parents are smiling.
tion,” says Itoshima. “Without it, the baby would Little Ryusuke got to me. I almost feel like I have
surely have needed reintubation, and the lung one more son of my own.”
damage would be much worse.”
RYUSUKE FINALLY began steadily putting on THIS IS EXERA
weight when he was three months old, and his Exera® is Sandvik’s brand for precision wire com-
ponents and it has also achieved notable success
lung condition started getting better as well. At
in other medical devices. For example, it is used
six months old he was ready to go home with
for deep brain implants for people with Parkinson’s
his parents. By this time, he had increased his disease, continuous glucose monitoring (diabetes),
weight thirteenfold, up to 3,374 grams (almost in hearing implants and in pacemakers.
NAVA ventilation is an innovation where the patient’s own
respiratory drive controls timing and ventilator assistance.
MEET SANDVIK #1–2020 21PRODUCTIVITY | Microfactories
The mobile containers
enable an agile service
that is easily transpor-
ted from one customer
location to another.
FLEXIBILITY IN A CONTAINER
Sandvik has developed a mobile container that goes where customers
go, reducing waste, increasing safety and bringing both time and cost
savings along for the ride.
BIGGER IS NOT always container, enabling an agile of terrain and conditions
better. Companies are disco- service that is easily trans- and can be tailored to suit
vering that small production ported from one customer individual customer needs.
spaces, called microfactories, location to another. It has the potential to be
help save energy, space, manned in person or steered
materials, time and costs. THE CONTAINER solution remotely for everything from
Microfactories are proving provides coiled tubing solu- administrative details such
invaluable to local markets by tions to customers on site, as certification and invoicing
being able to fabricate custo- using a digitally connected to technological processes
mized products on demand. system to straighten and cut such as the straightening and
This has been helped along tubing to match customer cutting of tubing.
by digitalization and automa- specifications. Virtually any A Sandvik container
tion, which enable many of length can be cut, signifi- solution is currently being
the tasks to be conducted cantly cutting down on waste deployed in Europe for Linde,
remotely and through a much compared with delivering a a world-leading industrial
smaller labor force than was standard tube size, leading to gases and engineering
previously possible. substantial material, time and company that in recent years
Sandvik Materials Techno- cost savings. has been building hydrogen
logy has placed the micro- The container solution stations to fuel vehicles. To
factory concept into a mobile can be deployed in all kinds date, the company has built
22 MEET SANDVIK #1–2020PRODUCTIVITY | Microfactories
more than 160 hydrogen-fu-
eling stations at commercial
filling stations in more than
15 countries, and further
stations are underway.
Sandvik Materials Techno-
logy is playing an important
role in Linde’s expansion by
supplying the company with
stainless steel alloy tubing
solutions through the Sandvik
Mobile Service Solutions. So
far, the container has traveled
to a number of locations in
Germany and Austria.
SANDVIK MOBILE SERVICE SOLUTIONS
LINDE GIVES Sandvik the The on-site coiled tubing solution offers numerous advantages for
heads-up when building a customers, including:
Easy-to-use precision monitoring and control
hydrogen station in need
A digitally connected system
of tubes; Sandvik sends a Automated tube straightening according to high standards
container to the station on a The ability to cut tubing of any length, resulting in savings on materials
prearranged date. The work and time
is generally completed the Optional end finishing
The possibility of deployment in any terrain including desert, offshore
same day. At the station, the
waters and extreme cold conditions
150- to 170-meter coiled High level of safety with deployment of long, seamless tubes
tubing is straightened and Flexibility and cost efficiency.
cut. “This is a production step
that we normally perform at
our factories but now we can on customer sites differ inventory and the stocking of
carry out this step right at from project to project, so coils. “From a logistical point
our customer’s site and cut it is essential to have tube of view the Sandvik solution
the tubes to match Linde’s solutions that allow us to eases the planning of the
exact specifications at each realize different dimensions construction site through an
location,” says Haydn Eagle, and lengths to connect the unproblematic direct delivery
Sales and Marketing Director necessary units on the fueling of the needed tubes, with no
at Sandvik. He adds that tube station site,” he says. ordering, storage or other
production, straightening logistical issues,” he says.
processes and even the con- IN ADDITION TO reducing Fritzer says his department
tainer are all patent protected. waste and costs, Fritzer has been purchasing tubes
Johannes Fritzer, Re- highlights further customer and raw materials from Sand-
search and Development, benefits with the convenient vik for about 15 years and has
Linde Hydrogen FuelTech, container solution, which been pleased with Sandvik’s
explains further. “Installations has Sandvik taking care of new mobile solution thus far.
MEET SANDVIK #1–2020 23COMMUNITY INVOLVEMENT | Engineers Without Borders Sandvik and Engineering Without Borders are working on sanitation at local schools in Karagwe, Tanzania. SANITATION FOR BETTER SCHOOLING In Tanzania, Sandvik and Engineers Without Borders are working in cooperation to construct sustainable, user-friendly toilet facilities in local schools, improving everyday life for the children. “PEOPLE HERE actually have a to find ways to make water more Since 2017 Sandvik has been shortage of most things, but accessible. the major sponsor of EWB. The water and sanitation have been Thanks to the collaboration partners have ongoing our focus areas,” says Marianne between the Mavuno Project discussions about which Grauers, Vice President at and EWB, the villagers in projects to support and what Engineers Without Borders Chonyonyo today get water form that support should take. (EWB) Sweden. She has spent from a source in Ihanda several “Our engagement in EWB is a several months in the rural kilometers away, and the school way to position ourselves as a Karagwe District working with has a number of rainwater- company and employer, since the Mavuno Project, a local harvesting tanks to supply it with young people want to work for non-governmental organization, water. responsible companies,” says 24 MEET SANDVIK #1–2020
COMMUNITY INVOLVEMENT | Engineers Without Borders
“All EWB infrastructure projects are made in
collaboration with local authorities, the people
concerned and local craftsmen.”
Kinna Brundin, Corporate collected material. After six get their personal plastic wash
Communications Event and months of composting, the basin from their dormitory. Most
Project Manager at Sandvik. “It feces has turned into humus public schools in the area don’t
creates pride among our and the chamber can be have any special facilities for
employees.” emptied. girls, though, and the need for
Johanna Burström, who studies safe disposal and access to
WHILE SOLVING sanitary Water and Environmental water is something we will
challenges in schools in the Engineering at Uppsala University include in our design when the
Tanzanian countryside is not and the Swedish University of sanitation facilities are imple-
Sandvik’s core business, it Agricultural Sciences, is one of the mented on a larger scale.”
corresponds with the compa- two engineering students who
ny’s corporate citizenship and worked in Karagwe to execute the ALL EWB infrastructure
ambition to create value for prototype project. In Karagwe, she projects are made in collabora-
society through engineering. performed a survey at the girls’ tion with local authorities, the
Community involvement secondary school to get input on people concerned and local
projects at Sandvik focus on how the design of the toilet could craftsmen.
four core areas: innovation, make school life easier for teenage “The work and the project must
health & safety, education, and girls, especially during their be mutal and shared,” says
local enablement. “Constructing monthly period. Grauers. “If not, it won’t be
safe, sustainable and user- “We know that menstruation sustainable. Through our
friendly toilet facilities involves is connected with taboos, which partners we contribute with
all of them,” Brundin says. is a challenge for many girls, know-how and building material
especially in mixed schools,” that the local community can’t
THE FIRST GOAL for the Burström says. supply or can’t afford to supply.
Karagwe sanitation project was
to build a prototype toilet for THE SECONDARY school used You also need to provide
evaluation before setting up for the pilot is only a couple of yourself with a large dose of
similar facilities in public primary years old and has far better patience, she says.
schools in the district. Because facilities than most schools in “Visiting engineers with a
of the water shortage, the the area. Even so, one major timeline, like myself and
solution arrived at was EcoSan, concern was the lack of Johanna, don’t necessarily have
a urine-diverting dry toilet. No well-equipped changing the same daily priorities as the
flush water is needed, and feces facilities with the access to local villager whose main focus
and urine are collected water where the girls could is to put food on the table,”
separately. Two chambers are easily dispose of used sanitary Grauers says. “That’s why it’s so
provided for feces, filled one at a napkins. great to work with Sandvik.
time. To lower the pH and limit “There is no water in these Sandvik has that long-term view
the amount of fluids, ashes and rooms,” Burström says. “To be that is needed for projects like
sawdust are spread on the able to wash, the girls have to this to be successful.”
MEET SANDVIK #1–2020 25INTERVIEW | Jennifer Allerton, Sandvik board member
“PEOPLE MAKE
THE DIFFERENCE”
The Financial Times has named her one of
the most influential women in engineering in
the UK. She is also a much-appreciated board
member of Sandvik. Meet Jennifer Allerton.
26 MEET SANDVIK #1–2020INTERVIEW | Jennifer Allerton, board member
BRITAIN’S FINANCIAL TIMES recently published a wondered where all the women had gone. Many
list of the “100 Most Influential Women Leaders in women took a career break to have children, and
Engineering in UK”; Sandvik Board Member Jen- because things were moving so quickly it was
nifer Allerton is on that list. Here she shares her difficult to come back in. At the same time com-
thoughts on the honor and on various ways that panies were not helping with flexible work hours,
Sandvik and the industry might move forward. childcare facilities and other types of support.
What does a recognition like this mean to “Then, when I retired from my executive role
you? and decided to have a career as a board member,
“For me it is something that can bring aware- it was unusual to have women on the boards of
ness to the broader public of what women in companies, specifically women with a technology
engineering can, and already have, achieved. I background. Today women on boards are more
think it is important to show that engineering common, but more women are needed as CEOs
can lead to a really interesting and fascinating and on the executive teams. That’s important
career, where you make a difference in people’s because study after study during the past ten
lives and in society. A lot of the solutions to our years has proved that diversity and thought lead-
current climate change issues will come through ership drives business performance.”
developments made by engineers: electric and What is the best way forward to achieve
hydrogen-powered cars, wind and solar energy, better gender balance in management teams in
plant-based food, carbon capture – the list is your opinion?
endless.” “I actually believe that women in general have
She stresses the fact that as an engineer, you better skillsets to run global businesses. They
can look forward to a lifelong learning path. communicate better, they don’t play politics,
“I have had to relearn everything I know about they understand people, and they have often
technology every third year, meaning you never been caretakers in their family. You don’t have the
get bored and you are always learning. I would advantage of being able to fire your family mem-
certainly encourage women to go into engineer- bers – you have to make it work. So if you can run
ing as a career.” a family, you can probably run a business.
During your years in business in general, and “What is important is to create a level playing
in technology in particular, what changes have field so that women can perform to the best of
you experienced when it comes to attitudes their abilities. That takes flexible working con-
toward women in business? ditions, predictability at work and inclusion. You
“When I started in IT about 40 years ago it was a can’t have casual sexism at work or unconscious
new industry; the technology was brand new, and bias – that cannot be tolerated if you want to cre-
it was about 50-50 men and women going into ate an environment where people can flourish.
the profession. There were no preconceptions “Studies show that you need about 30 percent
about who was good at IT, and companies were representation in a group before you stop feeling
open-minded. As long as you could pass an intel- like a minority, meaning it’s not enough to appoint
ligence test you could start a career in IT. one woman and think it’s done; you have to
“About 10 years later I looked around and appoint at least 30 percent.”
MEET SANDVIK #1–2020 27INTERVIEW | Jennifer Allerton, Sandvik board member
“There are so many incredibly passionate people
who enjoy their roles and want to succeed and
have a long career in the company.”
If you put your “experienced engineer “Boards typically make an impact over three
glasses” on, what role do you see companies to five years; since 2015, when I joined, we are
such as Sandvik playing in making a contribu- now starting to see results from the decisions we
tion to a more sustainable world? made: decentralized decision-mak-
“Sandvik has a huge contribution ing is closer to the customers,
to make, and we have stepped up the balance sheet is repaired and
to the challenge. I’m really excited brings financial firepower to refresh
about the new 2030 sustainability our business portfolio, and we have
goals that we have adopted. By great scorecards in place.
publishing them and by measuring “When I look to the future and to
progress we will make them happen. new technology, it will take place
Engineers always say that what gets in so many different areas. 5G
measured gets done. That’s why I will have a huge impact, enabling
think we have been quite brave to driverless cars for example. But we
publish those challenging goals must make sure we don’t adopt
when it comes to circularity and the other focus technology for technology’s sake. It has to be
areas.” because it makes the customers more efficient or
You have been a board member of Sandvik the world more sustainable. At the end of the day,
since 2015. What was your impression of Sand- we all want to leave the world in a more sustain-
vik before you joined, and has your impression able position for our children and grand-
changed in any way? children.”
“I was very excited and honored when I was
asked to join the board. Sandvik has a terrific
reputation for being one of the great engineering
companies in the world – recognized for great
JENNIFER ALLERTON
customer service, which was something that Sandvik board member since 2015
became loud and clear when I asked around Education and business experience:
among peers before I joined. M.Sc. in physics and B.Sc. in mathematics, physi-
cal sciences and geosciences. Chief Information
“Today, my impression has only become stron-
Officer at F. Hoffmann- La Roche Ltd. 2002–2012;
ger. The people in Sandvik are what make the dif-
Technology Director at Barclaycard 1999–2002;
ference. There are so many incredibly passionate various positions at ServiceNet USA, BOC (now
people who enjoy their roles and want to succeed Linde), Cable & Wireless Business Networks and
and have a long career in the company.” Unilever plc
Current Board assignments:
How do you as a board member see Sandvik
Board member of Iron Mountain Inc. and AVEVA
best taking advantage long term of the oppor-
Group plc
tunities from digitalization that is now occurring Nationality: British and Swiss
in the industries we are in? Born: 1951
28 MEET SANDVIK #1–2020ABOUT SANDVIK | CFO comment
TAKING MEASURES
3 QUESTIONS for normal as soon as possible.
Tomas Eliasson, Chief This will give us a big competi-
Financial Officer (CFO) tive advantage."
Does the situation with the
for Sandvik.
coronavirus affect Sandvik’s
How would you summarize the financial targets?
report for the first quarter? "The financial targets we pre-
"There were two phases: the sented in spring 2019 are long-
first two months developed term and have not changed. Our
largely as expected – apart growth and dividend targets
from production stoppages are valid over a whole business
in China – while in March it "Firstly, it is important to contin- cycle and the target of having
became increasingly clear that ue to focus on serving custom- a minimum adjusted operating
the coronavirus would have a ers and protecting personnel. margin of 16 percent is calculat-
significant impact on the global Then from more of a financial ed over a rolling 12-months and
economic climate. To deal with perspective, it is important to excludes the effects of metal
the growing uncertainty, we quickly take measures to adjust prices within Sandvik Materials
needed to respond with cost re- our costs, our production and Technology. This target was
ductions, which we presented at our inventory levels according developed based on how we
the end of March, with focus on to the new situation we find our- can perform even in a tough
both short-term and long-term selves in. It is also crucial that economic downturn, but obvi-
measures." these measures are balanced ously conditions are different if
Which measures are most so that we retain our compe- we have a scenario where large
important to focus on when a tences and our market position, parts of the economic system in
major event such as the coro- so that we can get through this big markets are closed for long
na-pandemic quickly changes tough period in a position of periods of time due to political
the whole playing field? relative strength and return to and health-related decisions."
SANDVIK´S LONG TERM FINANCIAL TARGETS
Sandvik's financial targets focuses on ≥16 percent
growth whilst achieving improved perfor- Adjusted EBIT percent margin trough
mance through economic cycles. A strong rolling 12 months adjusted for items affect-
financial position and dividend is also a ing comparability.
priority.
< 0.5
≥5 percent Net gearing net debt / equity.
Growth through the economic cycle, organic
and acquisitions. 50 percent of EPS
Dividend through economic cycle adjusted
for items affecting comparability.
MEET SANDVIK #1–2020 29ABOUT SANDVIK | The Group
SANDVIK AT A GLANCE
Sandvik is a high-tech and global engineering group offering products
and services that enhance customer productivity, profitability and safety.
In 2019, the Group had approximately 40,000 employees and sales of
103 billion SEK in more than 160 countries.
BUSINESS AREAS THE GROUP
SANDVIK MACHINING SOLUTIONS Revenues, MSEK
A market-leading manufacturer of tools 120,000
and tooling systems for advanced metal 100,000
cutting, expanding in additive manufacturing
80,000
and digital manufacturing.
60,000
40,000
SHARE OF REVENUES 40%
20,000
SHARE OF ADJUSTED OPERATING
PROFIT 47% 0
2015 2016 2017 2018 2019
Adjusted operating profit,
SANDVIK MINING AND ROCK TECHNOLOGY
MSEK and adjusted operating
A leading supplier in equipment and tools, margin, %
service and technical solutions for the %
mining industry and rock excavation within 20,000 20
the construction industry.
15,000 18
SHARE OF REVENUES 43% 10,000 16
SHARE OF ADJUSTED OPERATING
PROFIT 45% 5,000 14
0 12
2015 2016 2017 2018 2019
SANDVIK MATERIALS TECHNOLOGY Adjusted operating profit
Adjusted operating margin
A leading developer and manufacturer of
advanced stainless steels, powderbased
alloys and special alloys for the most Adjusted earnings per share,
demanding industries. Group total, SEK
12
SHARE OF REVENUES 15% 10
SHARE OF ADJUSTED OPERATING
8
PROFIT 9%
6
4
2
INDICES AND MEMBERSHIPS
0
2015 2016 2017 2018 2019
Figures refer to Group total 2019.
30 MEET SANDVIK #1–2020ABOUT SANDVIK | The Group
MAIN CUSTOMER SEGMENTS
MINING
We deliver drill rigs, rock-drilling tools and systems, mobile and stationary
crushers, load and haul machines, tunneling equipment, continuous mining
and mechanical cutting equipment, as well as various solutions to increase
automation, safety and customer productivity.
SHARE OF REVENUES 37%
ENGINEERING
Our tools and tooling systems for metal cutting as well as advanced materials
and components are used in engineering industries worldwide, improving
productivity, profitability, quality, output, safety and environment. Sandvik is
also a global leader in high-alloy metal powder for different applications.
SHARE OF REVENUES 21%
ENERGY
Sandvik offers solutions for all forms of energy production, including clean
and renewable energy. We supply high-alloy products, such as seamless
stainless steel tubes as well as tools and tooling systems to satisfy the
industry’s metal-cutting needs.
SHARE OF REVENUES 12%
AUTOMOTIVE
Our tools and tooling systems for turning, milling and drilling in metals
raise productivity when manufacturing e.g. engines and transmissions. Our
stainless and high-alloy products are found in, for example, airbags and air
conditioning.
SHARE OF REVENUES 11%
CONSTRUCTION
We offer products and services that increase safety and customer product
ivity in the breaking, drilling, tunneling, crushing and screening niches of the
construction industry.
SHARE OF REVENUES 8%
AEROSPACE
Sandvik works closely with the world’s aerospace companies. As they apply
new materials to manufacture airplanes that are lighter, safer and more fuel
efficient, advanced tooling solutions and light-weight materials from the
Group are critical.
SHARE OF REVENUES 7%
Figures refer to Group total 2019.
MEET SANDVIK #1–2020 31You can also read
