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Sandvik Steel plans to discontinue tube production in UK

Sandvik Steel today announced plans to discontinue production of seamless stainless steel tube at its Sterling Tubes subsidiary in the UK and transfer production to its main plant in Sandviken, Sweden, and to other units within the Sandvik Group.

The intended closure, which is scheduled for August 2001, at Sterling Tubes' manufacturing sites at Walsall and Chesterfield, affects a total of about 250 employees. Sterling Tubes' sales office will be retained as well as the Sterling Tubes brand name.

"These measures are part of the previously announced program of change, which is aimed at enhancing efficiency and restructuring production capacity within Sandvik Steel," says Lars Pettersson, President of Sandvik Steel.

Sandviken, 9 January 2001

Sandvik AB; (publ)