Belts and braces Sandvik

As an integral part of the global Sandvik engineering group, Sandvik Process Systems is dedicated to developing and sharing its steel-belt-based knowledge to add value to its customers’ processes. EmmaJane Batey spoke to global marketing manager, Staffan Karlsson, to find out how this is being achieved.

BELTS AND BRACES

Swedish-based engineering group Sandvik employs more than 47,000 people worldwide and achieved annual sales in 2010 of nearly SEK 83 billion. Since January 2012 the company has been divided into five business areas instead of the previous three, giving it more scope to focus on specific product areas and skill sets while still retaining its core commitment to steel belt manufacturing, tooling, materials technology, mining and construction.

Global marketing manager Staffan Karlsson explained why this reorganisation has taken place and the benefits it is set to bring the company and its worldwide customer base. He said, “The steel mill on which the whole Sandvik operation has been built celebrates its 150th anniversary this year and we decided to take this important milestone as the driver for making sure that all aspects of the business were operating as smoothly and effectively as possible. Each of the five business units is equally as important as the others in order to secure the continuing success of the group as a whole, so the reorganisation has allowed us to clarify each area.” Focus on technology

Divided into Sandvik Mining, Sandvik Machining Solutions, Sandvik Material Technology, Sandvik Construction and Sandvik Venture, the Group delivers expertise across all aspects of the business areas’ applications. The mining unit is focused on all underground requirements, the machining unit primarily creates carbide tools for machining solutions to the aerospace and automotive industries, the materials technology unit is related to the traditional steel activities of manufacturing stainless products such as straps, tubing

and razor blades, and the construction unit focuses on transporting ore and bulk goods for heavy industry.

Sandvik Venture is the business unit where Mr Karlsson’s Sandvik Process Systems is located, and it is also where all of the other Sandvik activities which do not fit another unit are based. Consequently, this unit includes such disparate activities as medical technologies such as steel hip implant manufacturing, some hard materials activities and diamonds which are made with steel technology. Mr Karlsson added, “Part of our strategic reorganisation will see some aspects of Sandvik Venture sold to suitable buyers in order to allow the remaining elements to flourish within the Sandvik family. There are a number of different technologies within Sandvik Venture and the immediate plan is to trim this down to guarantee that only the most relevant, technologies remain.”

Sandvik Process Systems has been a part of the original Sandvik production flow since 1901. With its core offer of steel belts and steel belt solutions for the process industry, Mr Karlsson pointed out that it is hard to find an industry where it is not already present. This varied client base is in opposition to its clearly defined product and knowledge base, but the

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two complement each other perfectly, particularly during such challenging economic times as we are currently experiencing.

Continued strong performance

Mr Karlsson explained, “We have continued to perform well during the financial crisis as we are not reliant on any one industry. We have clients across practically all industry sectors with our processing systems adding value at every step of the value chain.”

Around 60 per cent of Sandvik Process Systems’ activities come from the woodbased industries, such as boards, panels and laminated products, with the food industry, particularly major industrial bakeries and confectionery producers, representing a further 15 per cent. Chemical freezing and cooling industries also provide around 15 per cent of its business, with sectors such as oil and gas, film sheet casting, rubber tyre production, transport of food and dehydration making up the remainder.

One challenge that such a varied customer base creates is the ability to deliver a cohesive marketing and sales strategy, but Sandvik Process Systems is facing this in a positive manner. Mr Karlsson said, “We approach our marketing on an industry-byindustry basis so that we can ensure that we offer our clients the right product and service for their needs. With global blue-chip clients like Shell, Nestlé and Kraft all using our belt processing systems to add value to their offer, we know that we are wellpositioned to continue to deliver high-quality solutions as long as we also continue to stay close to our customers and listen to their changing demands.”

Time for growth

With strategic global locations including Germany, the USA, China, Japan, Korea and Brazil alongside its major production plant in Sweden, Sandvik expects to maintain its market-leading position by continuing to perform well in these regions and also to expand in the growing markets in Africa. The company as a whole has very aggressive growth plans for the coming years and makes no secret of the fact that it expects to double its sales, even against the backdrop of the economic climate.

Mr Karlsson concluded, “We have new geographical markets as well as new sectors to keep us on top. When times are hard people buy more chocolate; we provide the belts for most of the major confectionery producers. When times are good, people invest in property and DIY; we work with many global construction and building companies. When times are really good, people invest money in expensive cars; we provide the belts for the wind tunnels for Formula 1 cars for clients including Ferrari and Red Bull. We’ve got all bases covered so we’re ready for anything!” n