Sandvik AB's Sandvik Materials Technology to Adjust Capacity and Concentrate Production to Tubing Mill in Sandviken; Adjustment to Result in Redundancies

Sandvik AB announced that Sandvik Materials Technology will adjust capacity and order backlog for steam generator tubing to reflect the current market conditions in the nuclear power industry. The capacity adjustment of steam generator tubing will be implemented by phasing out the older installed steam generator tubing mill in Sandviken, Sweden, and concentrating all the production to the new steam generator tubing mill in Sandviken, which commenced commercial production in 2012. The older steam generator tubing mill will be mothballed, thus minimizing costs while creating the option to restart production if demand recovers. The capacity adjustment will take place during the second quarter of 2014, by the time all production of steam generator tubing will be transferred to the new mill. The adjustment of steam generator tubing capacity will result in redundancies affecting around 110 full time employees in Sandviken. The redundancy is expected to be handled through reducing third party workforce, natural employee turnover and voluntary agreements.