Concept and strategy

Sandvik implemented a new Group strategy on 1 January 2012.

Press release

The strategy aims for world-class performance in all businesses. The Sandvik Group has defined a new strategic direction aiming of reaching world class performance in operations as well as in shareholder value creation. The new strategy is focused on increasing profitability, strengthened position in attractive markets and segments and a more active portfolio management. The strategy is based on four successfactors:

• AMBITION to be world class in every core area,
• higher SPEED in every process,
• increased FOCUS in selected core businesses
• become truly GLOBAL in mindset and organization but with strong LOCAL adaptations.

Core businesses

The Sandvik Group conducts operations in five business areas with responsibility for research and development (R&D), production and sales of their respective products:
Sandvik Mining, Sandvik Machining Solutions, Sandvik Materials Technology, Sandvik Construction and Sandvik Venture.

Sandvik's customers are active in many areas, including the automotive and aerospace industries, mining and construction operations, chemicals, oil and gas, power, pulp and paper, household appliances, electronics, medical technology and pharmaceuticals industries. Approximately two thirds of the products are industrial-consumption products and one third consists of investment goods.

Updated financial targets

On account of the new strategy and organization, Sandvik performed an overview of the Group's financial goals. The goals should be viewed in relation to the Group's ambition to increase value creation and be the world leader in selected segments as well as an assessment of future global growth and sufficient financial strength. The updated goals of the Group are as follows: