Niched materials technology sets sights on listing
An exciting journey is taking place at Sandvik Materials Technology toward a planned listing.
“Preparations are ongoing for us to become an independent company. We are building for tomorrow and our future organization, which includes finding talented individuals possessing key competences for our new company,” says Sandvik Materials Technology’s President, Göran Björkman.
In October 2020, Sandvik’s Board of Directors decided that Sandvik Materials Technology (SMT) was to continue its preparations for a listing at the earliest in 2022, provided that the circumstances at the time are deemed to be right.
A listing will offer SMT good potential to develop moving forward
The decision was welcomed by President Göran Björkman: “A listing will offer SMT good potential to develop moving forward. If SMT becomes an independent company, I am convinced that we will receive the attention we deserve and also the capital needed for growth.”
He emphasizes that SMT is today a strong player in the industry, a technology leader in its niche of high-alloy steel and with stronger finances than the average for the sector.
“Compared with our competitors, we are a high-performing company, though within the Sandvik Group we are less profitable than other business areas. Over time, it is never good for an organization to be looked upon as a poor performer when we are actually doing a good job.”
Thanks to control across the process chain, from research and development to smelting and the final product, SMT can guarantee the highest quality and flexibility for customers. This control of all process stages also means SMT has its own in-house metallurgy, which is key to the company’s unique expertise in materials technology and product development.
“Control of the entire process chain also allows us to integrate safety and sustainability throughout the business, and increase circularity and minimize our carbon footprint,” says Göran Björkman.
Moreover, SMT’s processes are largely circular.
“With a process that uses electricity that is more than 90% fossil-free and products that are made from an average of 82% recycled steel, Sandvik Materials Technology has a high-tech process that makes us a sustainable and technology-leading steel producer,” says SMT’s President.
Prior to the listing, SMT will continue to further position itself for growth in a number of rapidly expanding segments, such as industrial heating, renewable energy and medical technology.
The aim is now to grow SMT into a 20 billion SEK company.
“Our oil and gas business remains an important and profitable segment for us, but our future growth will derive from other segments,” explains SMT’s President.
And global trends suit SMT well. The average age is increasing and we need more medical care, and society must shift to renewable energy and reduce carbon emissions. And Göran Björkman believes SMT’s unique expertise in materials technology and SMT’s circular and CO2-efficient process will play a crucial role in the future.
“Materials technology is a technology of the future and we are a technology leader with products that move the industry and society toward a more sustainable future. Sandvik Materials Technology is one of Sweden’s finest companies with a global presence and long-standing and strong customer relationships. We are aiming for growth and that is our focus going forward,” says Göran Björkman.
Facts about SMT
- 5084 employees in 29 countries
- 280 employees in R&D
- Revenue: More than 13 billion SEK in 2020
- First in the world to succeed in using the Bessemer method for steel production on an industrial scale
- SMT supported the Vasa museum in Stockholm to replace 4,000 steel bolts with new-generation, duplex stainless steel bolts in the royal warship Vasa, the most visited attraction of Scandinavia