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Sandvik planning to outsource service operations

Sandvik has initiated an evaluation of the possibilities of having an external cooperation partner carry out parts of the operations within Sandvik Service.

The work assignments that are affected include building construction and facilities management, payroll service, company healthcare, training and market support. The remaining parts of the service company's operations will be transferred to other units within Sandvik.

About 180 persons are affected by a possible outsourcing in Sandviken and Stockholm. Sandvik is now initiating negotiations with various conceivable cooperation partners.

"We believe that an external party that has service as its core operations has better prospects over the long term of being an efficient supplier of these specific services to the Group," says Sandvik Executive Vice President Peter Larson.

Sandviken, 16 September 2003

Sandvik AB; (publ)