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Sandvik continues expansion in NAFTA

Sandvik's Capital Market Days in NAFTA were launched today at the Group's main US facility in Fair Lawn, New Jersey, just outside New York City.

President Clas Åke Hedström presented the Group's increased growth objectives and development during the first quarter of the year. He also reported on Sandvik's strong expansion in recent years with the NAFTA region – the US, Canada and Mexico.

NAFTA's importance for Sandvik has risen significantly. Since 1993, sales have increased an average of 12% annually, including acquisitions, to slightly more than SEK 11 billion. Currently, NAFTA accounts for 26% of total sales, compared with 21% in 1993, and more than 70% is manufactured locally. Sandvik has invested a total of more than SEK 2 billion in NAFTA during this period and the number of employees has increased to nearly 6,000.

"Sandvik is well-positioned for additional growth within this strategically important trading block, which is also one of our three prioritized growth areas. We are currently completing our investments in increased production resources and strengthened market organization. We are continuing our expansion and intend to capture market shares in all three business areas, despite the uncertainty about the business climate in the near future," says Clas Åke Hedström.

James T Baker, President of the subsidiary Sandvik Inc. in the US, noted in his presentation the four factors underlying Sandvik's successful development in the market area: close partnership with customers, intensive product development based on an advanced R&D, focus on attractive product and customer areas and continued investment in skills and capacity.

The more than 50 participants at the Capital Market Days are from the US, the UK and Sweden and represent the financial markets and the media. Next on the program is the presentation of the three business area's operations in the US and visits to some of the facilities – Coromant's cemented-carbide tool plant in Fair Lawn, Steel's seamless tube operations in Scranton, Pennsylvania and Precision Twist Drill's drill plant in Crystal Lake, outside Chicago, Illinois. The program for the Capital Market Days in NAFTA is presented on Sandvik's website.

Sandviken, 14 May 2001

Sandvik AB; (publ)