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Sandvik Group

Operations at Kanthal unit in Cinisello, Italy to be phased out

As a consequence of the ongoing review of Sandvik Materials Technology's wire drawing plants, it has been decided to phase out operations at the unit in Cinisello, Italy, within the Kanthal product area.

This action is part of the efforts to improve cost efficiency and increase profitability.

The decision affects about 90 persons. Negotiations with the trade unions will be initiated in the near future, with the ambition that the process is as smooth as possible for the employees.

Sales of Kanthal's products in Italy will not be affected by the decision.

Sandviken, 7 March 2006

Sandvik AB; (publ)