The Sandvik Board of Directors has today decided to propose the distribution and listing of Sandvik Materials Technology (SMT) to the Annual General Meeting, which takes place on April 27, 2022. The listing is planned to take place on the Nasdaq Stockholm Exchange on August 31, 2022, and is expected to meet the Lex Asea requirements. Sandvik has also decided that Alleima will be the new name of SMT, provided shareholder approval to distribute and list SMT.
“We are pleased to take the next step in this process and propose the distribution and listing of SMT to the Annual General Meeting. We are convinced that this will increase long-term shareholder value, and that both Sandvik and Sandvik Materials Technology can develop more favorably on their own”, says Johan Molin, Chairman of the Sandvik Board of Directors.
The name Alleima combines two core strengths of SMT’s business – alloy and material – with alei, an old version of the word alloy, as the foundation.
Göran Björkman, President of Sandvik Materials Technology, answered three quick questions regarding Sandvik Materials Technology’s listing and brand journey.
1. What are your expectations for the future, and as a possibly listed company?
This is a great opportunity for SMT. The separation and listing will give us an opportunity to be evaluated based on our own merits and business opportunities and not be compared with other business areas within Sandvik.
SMT is a world-leading player in its fields, and a strong performer when compared with relevant competitors. An independent SMT will provide full focus and help us realize our full potential and provide the best possible conditions for growth and development going forward.
In Alleima we have found a name that encapsulates the core of what we do and our uniqueness in a great way. It will enable us to position ourselves as the technology leader, progressive customer partner, and sustainability driver that we are.
With “Advancing together” as our brand promise, our business strategy to grow our business through advanced materials technology and close customer partnerships has been closely linked to building the brand.
2. How did you decide on Alleima as your name and corporate brand?
There were several factors that were important when choosing a new name, most importantly that the name should support the brand positioning and platform and convey a story about who we are as a company and that it is differentiating from our competitors. The name also had to be available for legal protection in all our markets and work globally in different languages.
Our future name “Alleima” has been developed in parallel to the creation of our brand platform, after a thorough process and months of gathering input from stakeholders, the market, and brand analysis. Originally, we started with a list of over 300 names, which we then narrowed down in a thorough process.
The name Alleima combines two cornerstones of our business – alloys (an old version of the word alloy – “alei”) and materials, linking to our heritage and future offering. The name is very different from the names of our competitors and very different from the name “Sandvik”. This has been a conscious decision – it enables a fresh start, and the name has high differentiation potential in our industry.
Our new logotype shows an abstract “A“, as well as an arrow that pushes another element forward, adding a notion of progressiveness and advancement – just as we want our value offering to be reflected.
3. When will the new name and brand be activated?
The activation of the new name and brand towards the market will happen at the date of listing in Q3, subject to shareholders approval. Until then, we will conduct our business unchanged as Sandvik Materials Technology. The new brand will be activated towards our customers and the global market as of listing and rebranding of facility signage, packaging materials, website, etc., will happen in a coordinated manner.
After the brand change, we will continue to offer the same high-quality and advanced products and services with the same contacts, expertise, and solutions as we do today. Any contracts and orders that formally exist will still be valid even though the name of the legal entity changes.
During 2019, the Sandvik Board of Directors decided to initiate an internal separation of Sandvik Materials Technology and to explore the possibility of a separate listing at the Nasdaq Stockholm Exchange. The decision was based on the belief that each party will develop more favorably by itself, increasing opportunities for profitable growth and improving long-term shareholder value.
To prepare for the separation, work was initiated, to develop a separate name and brand for SMT, as a stand-alone company.