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MEET # 1-2021
SANDVIK
SANDVIK GROUP MAGAZINE
DIVERSITY FOR
BUSINESS
EXCELLENCE
“Diversity has a direct impact on company
performance,” says Nidhi Gokhale, Sandvik.
PAGE 26
A SUPERCRITICAL MOMENT • Strategy review
AI-driven packaging • FOCUS: AUTOMATION IN MINES
• Carbon-emission-free heating system
SUSTAINABILITY ARTIFICIAL INTELLIGENCE ENVIRONMENTAL PROTECTION
NORWAY. Glasopor eliminated SWEDEN..New intelligent CHINA. The Langfang facility has
its carbon footprint by packaging is inspired by Charles taken several initiatives to save
switching to a Kanthal® electric Darwin’s evolution theory. energy and reduce emissions.
PAGE 10 PAGE 22
heating system.
PAGE 20
20
10
7 24
22
DIGITAL MACHINING
USA. Sandvik engineers
provided digitalization
insights at a New York
university.
PAGE 7
RENEWABLE ENERGY
NETHERLANDS. Dutch company SCW
Systems uses the fourth natural phase of
water to produce renewable gas. PAGE 24
CONTENT#1-2021
Follow us on social media and find more
stories at: home.sandvik/meetsandvik
MEET SANDVIK: A Sandvik Group magazine
PUBLISHER RESPONSIBLE UNDER SWEDISH PRESS LAW: Jessica Alm
EDITOR-IN-CHIEF: Marita Sander PRODUCTION: Spoon Publishing AB
WRITERS: Danny Chapman, Mattias Karén, Isabel Klieger, Elina Li, Susanna Lindgren,
Jonas Rehnberg, Nic Townsend
PRINT: Falk Graphic DATE OF PRINT: May 2021
Published in Swedish and English, in printed form and at our website home.sandvik
EMAIL: marita.sander@sandvik.com. Copyright © 2021 Sandvik Group.
All Sandvik trademarks mentioned in the magazine are owned by the Sandvik Group.
PHOTO: Anna Björkegren, Stéfan Estassy, Wang Jing, Sandvik
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2 MEET SANDVIK #2–2019
#1–2021
CONTINUOUS DEVELOPMENT
TO CONTINUE BEING a relevant and We have a tradition of world-class technical
successful company, we constantly strive to know-how that we will build on, and we are
be at the forefront of technological develop- doing this through our own expertise and
ment, to find new solutions and navigate the acquisitions. The acquisition of the software
right path in a changing world. External trends company CGTech and the agreement to
such as digitization, automation, electrifica- acquire DSI Underground, a leading provider
tion and an increased focus on sustainability of underground security solutions (page 8),
affect how we act today and in the future. are good examples of this, and the ambition
is for a continued active acquisition agenda.
IN MARCH, we presented an updated strat-
egy and a new common purpose (page 17). INNOVATIONS ARE crucial to our success.
The outside world and a number of important Examples of this in the magazine include the
shifts that we are facing are playing a greater electric loader (page 5), AI-inspired packag-
role than before. We have also defined clear ing (page 10) and our automated concept
goals for 2025. In recent years, Sandvik vehicle for the mining industry (page 14).
has become a more customer-oriented, These technical solutions make our custom-
decentralized and financially stable company, ers more productive, efficient and sustainable
and we are now ready to focus on growth. and are central to us continuing to be our
Although the Covid-19 pandemic caused a customer's first choice.
sharp decline in demand in 2020, we have
nevertheless managed to maintain profit-
ability at a good level, and 2021 has all the Stefan Widing,
prerequisites for a better year ahead. President and CEO
MEET SANDVIK #1–2021 3
4 MEET SANDVIK #1–2021
BATTERY INCLUDED
MINING JUST GOT more muscles, as Sandvik unveiled
the world’s first 18-ton battery loader LH518B. Using an
electric battery solution reduces heat and emissions
underground, thereby helping mines reach sustainability
targets and create a better working environment.
Thanks to AutoSwap™, a patented self-swapping
system, changing batteries is fast and easy, with
minimum manual handling, and it only takes about six
minutes.
The new loader comes with an exceptional capacity
for its size – its design allows the loader to fit inside a 4.5
x 4.5-meter tunnel and carry 18-ton loads.
MEET SANDVIK #1–2021 5
NEWS
FOR THE TWELFTH consecu-
tive year, Sandvik qualified for
the renowned Sustainability
Yearbook by S&P Global,
indicating a sustainability
performance within the top
15 percent of its industry.
Kilotons of CO2 reduced in 2020, corresponding
to a 17 percent reduction. The 2030 target is to
reduce CO2 emissions by 50 percent, or to 166
ktons with the current structure.
SUCCESSFUL WEBINAR
ON MATERIALS
LEADING EXPERTS from prospects and partners in times 4,000 tuned in live, and by early
Sandvik and external partners of travel restrictions and social February the webinar had been
teamed up for a live interactive distancing requires new downloaded about 15,000
webinar to present the very thinking,” says Paulina Kjellin at times. The most recent event in
latest in additive manufacturing Sandvik Additive Manufacturing, the series covered super-
titanium powder production as who hosted the event and was duplex materials. If you don’t
well as life-changing applica- pleased with the turnout. know what those are, scan the
tions in medical technology. Some 1,500 viewers signed QR code.
“Reaching out to customers, up in advance, but more than
6 MEET SANDVIK #1–2021
NEWS | and short facts
POLYTECH STUDENTS GO DIGITAL WITH SANDVIK
A GROUP OF engineering students autonomously gathered from the design of the machining
at Rennselaer Polytechnic machines and analyzed, supporting process with real-world results via
University in Troy, in the U.S. state of the understanding of the manufac- the actual metrics and detailed
New York, got a feel for Industry 4.0 turing process – and thus optimize information from Machining
in an assignment created by Sales it to levels of efficiency not possible Insights.
Engineer Dayne Mosconi and without the use of the technology,” “We help prepare students to
Digital Machining Specialist Bijal explains Patel. work with technology they can be
Patel at Sandvik. They were Students interpreted the raw expected to utilize and further
supported by the machine monitor- data coming from the machines to promote once they enter the
ing software CoroPlus® Machining determine such things as cycle workforce as engineers supporting
Insights, developed by Sandvik. time and axis load measures. They manufacturing processes,” says
“The purpose was to teach were then able to compare the Mosconi.
students how data can be engineering goals that went into
THE KNIFE THAT
LIGHTS FIRES
OFFERING TWO FUNCTIONS in one
tool, the Swedish FireKnife comes
with a handle made from bioplastics
that hides a weatherproof fire
starter that’s good for 3,000
strikes. The blade is made of
Sandvik 12C27® stainless steel,
which consists of 90 percent
recycled material.
INVESTMENT IN AI-POWERED SOFTWARE
SANDVIK HAS acquired a minority stake in the American
software company Oqton, a leading provider of AI-powered
manufacturing solutions that allow manufacturers to manage,
optimize and automate their manufacturing workflows.
“This investment is in line with our strategic agenda to
broaden our offering in digital manufacturing,” says Stefan
Widing, CEO of Sandvik.
Oqton provides a cloud-based manufacturing platform that
links data across the complete manufacturing ecosystem,
enabling manufacturers to operate agile factories and
manage complex product mixes with lower inventory and a
simplified supply chain.
Learn more at oqton.com
MEET SANDVIK #1–2021 7
NEWS | and short facts
DSI is a market-leading
underground safety solutions
company.
HISTORIC ACQUISITION
IN LATE 2020, Sandvik signed global reach will further and safety to our customers,”
an agreement to acquire DSI strengthen our world-leading says Henrik Ager, President of
Underground, a market- market position within mining and Sandvik Mining and Rock
leading underground safety rock solutions." Solutions.
solutions company. It’s one DSI Underground is present in DSI Underground has
of the biggest acquisitions in 70 countries, with 22 production approximately 2,000 employees,
the history of Sandvik. units situated close to the end and its 2020 revenue is expected
“This acquisition is an customers. to be about EUR 518 million. The
important step in our growth “With the world’s most purchase price is approximately
ambition," says Stefan Widing, extensive choice of ground EUR 943 million on a cash and
President and CEO of Sandvik. support products and systems, debt-free basis. The impact on
"DSI Underground’s track record the DSI Underground offering is earnings per share will be slightly
of driving progress and safety in highly complementary and positive. The transaction is
underground operations and its enables us to deliver greater value expected to close by mid-2021.
8 MEET SANDVIK #1–2021
NEWS | and short facts
DIAMOND WINS GOLD
JOHAN SUNDSTRÖM and Malin long-standing challenge of
Mårtensson were awarded the producing complex shapes of the
Sandvik Innovation Prize 2020 for world's hardest material," CEO
their work in developing the Stefan Widing told those gathered
world’s first 3D-printed diamond digitally for the award ceremony.
composite. Possible commercial The Sandvik Innovation Prize is
applications include products that awarded to employees who have INNOVATORS
AWARDED
demand extremely high wear developed the
resistance, thermal stability and most
low weight. innovative THE 2021 Wilhelm Haglund Medal
“This is a unique product with product or for the product developer of the year
many opportunities for top-line process during was awarded to the innovators of
growth, since it solves the the year. Exera® medical wire and wire-based
components for medical devices
with demanding requirements, such
ALLOY SANICRO® 35 AWARDED as pacemakers, devices for glucose
monitoring and units for deep-brain
THE SANDVIK ALLOY Sanicro® material, and it is gratifying to see stimulation. The winning team was
35 won the Materials Performance our peers in the industry recogniz- Gary Davies, Business Unit Manager
Corrosion Innovation of the Year ing its benefits too,” says Ulf Medical, Tim Tacionis, Lead Engineer,
Awards 2021, published by NACE Kivisäkk, Senior Expert Corrosion and Gene Kleinschmit, Senior
International, the world’s largest- Resistant Alloys, Sandvik Materials Product Manager, at the Sandvik
circulation magazine dedicated Technology. “Sanicro 35 is the result Palm Coast, Florida, site.
exclusively to corrosion prevention of us identifying a market The Sandvik Sustainability Award
and control. opportunity for customers, then in Memory of Sigrid
“We are pleased with this unique innovating an effective solution." Göransson went to
the team behind the
EVA LINDH-ULMGREN
production program
for premium
JOINS ROYAL ACADEMY crushing chambers
in Svedala, Sweden:
EVA LINDH-ULMGREN, Director Jörgen Petersson, Foundry
Materials Design at Sandvik Specialist and Anders Åkesson, EHS
Materials Technology, has been Manager. More than 90 percent
elected a Fellow at the Royal recycled steel is used as raw material
Swedish Academy of Engineering in a premium crushing chamber
Sciences (IVA). recycling program, reducing both
“I am very happy and honored," indirect and direct carbon emissions
says Lindh-Ulmgren. "Enterprise in the supply chain. Sandvik has also
and academia need to team up introduced the first certified
and develop new interdisciplinary Environmental Product Declaration
approaches. IVA is a very exciting in the industry for manganese
platform and enabler in this crusher wear parts.
respect."
MEET SANDVIK #1–2021 9
DIGITALIZATION | Intelligent packaging
HOW DARWIN INSPIRED
AI-DRIVEN PACKAGING
It all began with a revelation involving Charles Darwin’s
evolution theory and ended with an AI-driven solution set to
change machine tool packaging as we know it. When Sandvik
Coromant launches its application next fall, every new tool
created will be allocated the most suitable packaging available,
leading to major cost-savings and vastly lower CO2 emissions.
IN THE SUMMER of 2019, Maria Rajabzadeh
Namaghi, a 33-year-old R&D engineer and
system developer from Iran, was sitting in
her office in Sandviken working on Sandvik
Coromant’s next generation of product
packaging selection solutions. She had a
tall order: to ensure the packages selected
would be as small and lean as possible,
not only to cut material costs but also to
help the Sandvik Group reduce its overall
carbon footprint.
Prototypes of AI-driven packaging.
Although Rajabzadeh Namaghi had al-
ready found a solution based on traditional
computer programming, she couldn’t kick algorithm evolves through the generations,
the nagging feeling that something was allowing for smarter and better solutions to
missing. “The solution wasn’t flexible develop with every cycle. After spending
enough,” she recalls. ”It was customized a few days putting her theory to the test,
for a certain type of packages, and Rajabzadeh Namaghi knew she was on to
it wouldn’t work for new types of something big.
packages.” “I was really excited,” Rajabzadeh
Namaghi recalls. ”I couldn’t wait to tell my
THEN, AS SHE let her thoughts wander colleagues here at the department about
through the deserted office landscape, it it when they were back from vacation.”
suddenly hit her: “What if I applied genetic She notes that although genetic algorithm
algorithms using artificial intelligence?” A isn’t something new in itself, it hasn’t to
genetic algorithm is an AI-based problem her knowledge been applied to packaging
search process based on Charles Darwin’s solutions in this manner before.
evolution theory. Just as in nature, the “The way it works here is that whatever
10 MEET SANDVIK #1–2021DIGITALIZATION | Intelligent packaging
Maria Rajabzadeh
Namaghi came up
with the packaging
solution.
you might need to put in a package – “The smaller packages you use, the less
whether something small like a tool or package material you waste,” Rajabzadeh
something big like a bicycle – the appli- Namaghi says. ”And in terms of transport,
cation will find you the smallest possible smaller packages take up less space,
package to fit it into,” she says. ”The size or meaning you can fit more into a ship-
geometrical shape of what’s being packed ment and therefore waste less fuel.” Her
doesn’t matter.” department is responsible for specifying,
She explains how the Package Selector developing, implementing and supporting
Application (PSA) identifies the most a system platform for CAD/CAM/CMM/
critical points of an object by analyzing CAE automation.
a CAD-based model of it in 3D. The AI
algorithm then takes over to work out SAMIR BALIC, Product Manager Packa-
the object’s rotation, and from there the ging and Labeling, says the application,
application is able to recommend not only which is scheduled to go live in the second
the smallest possible packaging for it, but half of 2021, will automate the packaging
also how to fit the object into the selected selection process “from start to finish.”
packaging. “The product designers will get a tool
added to their CAD programs,” he says,
ASIDE FROM contributing to lower costs ”and with the simple push of a button they
when it comes to packaging materials, will be able to film the tool they have just
transportation and storage, the ability to created and it will be matched with the
always select the smallest possible pac- most suitable packaging – even before the
kage will also help reduce CO2 emissions. tool has been physically created.”
MEET SANDVIK #1–2021 11FOCUS | Automation
Waymo is Google’s
self-driving car.
SELF-DRIVING
BACK TO THE FUTURE
Many people, from engineers to filmmakers, have long predicted the
arrival of the driverless car revolution, and now of course it’s very much
on the horizon. But while driverless cars are getting the attention, other
sorts of self-driving vehicles have been quietly changing industry, partic-
ularly the mining industry.
“WHERE WE’RE GOING, we don’t need roads,” that where they were going, they wouldn’t need
exclaimed Doc Brown in the 1985 sci-fi block- drivers?
buster Back to the Future. Doc was talking to In 2015, the year of the future that Doc and
Marty McFly as their time machine, made from a Marty flew to, there was much hype about the
sports car, flew off into the future of 2015. There dawn of the age of the self-driving passenger car.
are few signs of flying cars today – the filmmakers In December 2015, for example, Tesla CEO Elon
seem to have grossly misjudged the technolog- Musk predicted that a completely automated car
ical developments of transportation in the early would be introduced by the end of 2018.
21st century – but what if Doc had told Marty The completely automated car has yet to hit
12 MEET SANDVIK #1–2021FOCUS | Automation
are much easier to manage in a self-contained
mine compared with a city street, hence the much
earlier adoption of the self-driving technology in
mines.
The mining industry is today probably the most
advanced when it comes to the actual use of
self-driving vehicles, but there are many other
industries where the use of self-driving vehicles is
ready to take off.
Driverless tractors for the farming industry are,
for example, already in existence and will soon
surely revolutionize the agricultural industry, which
already spends billions on robotics. The freight
Local Motors’ shuttle Olli, made with additive manu-
facturing technology and finished with Sandvik tools.
industry is also developing driverless trucks to go
from A to B.
Governments are working with industry to
the market, but it is clearly in advanced stages of develop driverless public transportation. A driv-
development. erless bus was in fact unveiled back in 2015 in
The pioneering companies in the field, includ- China. It drove 20 miles through the crowded city
ing Waymo, the Google self-driving car project, of Zhengzhou without crashing into other motor-
and Tesla, have built the cars and run numerous ists. And in the U.S., in Phoenix, Arizona, Waymo
well-publicized trials over the past few years, and has been operating a driverless minivan taxi
the technology clearly works. The main hurdle service since 2017, albeit in a limited geographic
to mass market rollout is making the cars 100 space.
percent safe. There are too many hazards in the
real world, including changing weather conditions IN FACT THE technology for these vehicles is
and the unpredictable actions of pedestrians and so advanced that they can now be produced on
other drivers, to be able to ensure that self-driving 3D printers. One example of this, a shuttle bus
cars will do exactly the right thing all of the time. named Olli, was unveiled at the 2018 International
Manufacturing Technology Show in Chicago. It
BUT WHILE WE will have to wait a bit longer was employed to shuttle visitors from building to
to use driverless cars ourselves, other types of building.
self-driving vehicles have been in use for years, But as in the case of driverless passenger cars,
and that use is becoming ever more widespread. the main hurdle to rollout for all these applications
A Sandvik concept vehicle with an automation is safety – specifically safety in the context of
solution, for example, is the current technological putting the vehicles into the unpredictable real
pinnacle of autonomous and remotely operated world of people.
equipment that the company has been develop- Solutions will undoubtedly be found, and found
ing for two decades. And automated loaders and soon. Some experts believe that self-driving cars
trucks from Sandvik have been working in mines could be a feature of our highways within the com-
around the world for more than 20 years, with zero ing five years. We’ll still need roads in that future,
accidents involving people. Of course hazards though, even if we won’t need drivers.
MEET SANDVIK #1–2021 13FOCUS | Automation ROCKING THE MINING INDUSTRY This is what the future of mining looks like. A mining automation concept vehicle from Sandvik gives a unique and real hands-on preview of how the latest technologies can make the mining industry more safe, efficient and sustainable. CABINLESS, ELECTRIFIED and automated. Ruokojärvi. “The companies need to search for Without human interaction, a concept vehicle valuable minerals in locations that are more and from Sandvik with an Automine® mining auto- more challenging and remote.” mation solution can navigate through the rough and changing conditions of underground mining GENERALLY SPEAKING, the deeper into the tunnels. It can read the environment in 3D, create ground the more challenging the rock mechanical a model of the environment and plan its own conditions and the more challenging and costly missions – while the miners monitor the machine it becomes to establish a mining area. Safety operations from the comfort and safety of a hazards increase and building infrastructure can control room that can be located hundreds of become problematic. miles away. “Removing people from hazardous environ- “Automation, digitalization and electrification ments is really one of the main drivers for auto- will form the future of mining,” predicts Jarkko mation,” says Ruokojärvi. “Reducing the in-pit and Ruokojärvi, Director of Automation Global Busi- underground mining workforce by moving people ness Development and Marketing at Sandvik to control centers will increase health and safety Mining and Rock Solutions. “New technologies and create new types of job opportunities, which provide new opportunities to increase safety should benefit local communities and make the and productivity and make the operations more operations more sustainable.” sustainable.” Sandvik has been developing autonomous and The ongoing development toward more tech- remotely operated equipment for 20 years and its nically advanced mining is both necessary and Automine automation system has been delivered inevitable, Ruokojärvi says. The mining industry in hundreds of mining machines to customers has recovered from a tough period of market around the world. Many of the groundbreaking volatility and downturn in commodity prices. This mining innovations have come to life in its test has increased the focus on cost-cutting through mine and test lab in Tampere, Finland. To continue operational efficiency. this journey, it is here also that the concept vehicle “Add to that the fact that many easier deposit is being developed under great secrecy. locations have already been mined,” says “With this vehicle we wanted to take automation 14 MEET SANDVIK #1–2021
FOCUS | Industry 4.0
Automation, digitalization
and electrification form the
future of mining.
a step further, disrupt the mindset of how things technologies across different types of equipment.
are conventionally done and show what we think Developments in the automotive industry have
the future will hold,” says Ruokojärvi. been valuable in this endeavor. The advances in
sensor technology development for self-driving cars
THE CURRENT CONCEPT LOADER operating have led to new components becoming available
its way through the test mine in Tampere is not for sensing the environment, for route planning
for sale. It is even doubtful that there ever will be and for avoiding obstacles. The electrification is
a loader that looks exactly like it available on the greatly beneficial in mining too, as battery-driven
market. This is a teaser, to show what to expect. equipment reduces CO2 emissions both above and
The concept loader showcases the Sandvik vision underground. If powered with renewable energy
for future robotic mining technologies, and the the value chain increases further.
plan is to gradually commercialize and deploy the The new concept vehicle has been designed
MEET SANDVIK #1–2021 15FOCUS | Automation
from the ground up for autonomous use. All factors “Our goal is to make the automation more
necessary to accommodate people onboard generic so that more types of mining methods
have been eliminated, such as the operator cabin. can get the same benefits of safety, production
Optimizing the design for autonomous use allows efficiency and sustainability, regardless of how
higher payloads in existing tunnels. It also enables complicated the mining process is,” Ruokojärvi
the design of smaller machines that can work in says.
narrow passages, a valuable aspect as smaller
tunnels mean less mining waste. HE PREDICTS THAT in five to ten years mining
“Focusing on machine design for only auto- operations in most parts of the world will be far
nomous use allows for improved motion control more technically advanced than they are today.
and higher reliability,” says Ruokojärvi. “The higher The concept vehicle has already shown what it
intelligence provided by the new technologies can look like.
allows for increased operational flexibility, higher “It’s very exciting that we can show that these
adaptivity and higher productivity, due to the technologies work in the toughest conditions and
machine’s self-awareness and self-planning, as what is possible to achieve,” says Ruokojärvi. “In
well as simpler preparations required by people.” our next steps it is necessary to evaluate how to
Mining operations are widely varied in terms incrementally commercialize these technologies
of mine design, minerals and geology. Different to make sure they meet the needs of our
levels of automation are already in use in mining customers.”
operations.
Removing people from
hazardous environments is
one of the main drivers for
automation.
16 MEET SANDVIK #1–2021STRATEGY | Stefan Widing
STRONGER FOCUS
ON GROWTH
Sandvik has updated its strategy for an increased focus on
growth. Six strategic objectives, well-defined measurables
and a new purpose are the building blocks of the future.
SANDVIK HAS reviewed its CEO, explains, “Our previous making close to our customers,
vision, core values and strategy strategy has served Sandvik well. agility and quick adjustments to
to ensure further progress, value We have built a strong foundation, changing market conditions are
creation and engagement among and today we are a more stable, now ingrained in our culture.”
stakeholders. profitable and decentralized The rationale behind the review
Stefan Widing, President and company. For example, decision- was to simplify and bring clarity
MEET SANDVIK #1–2021 17STRATEGY | Stefan Widing
“The new purpose expresses how our innovative
solutions create value, not only for our customers
and employees but also for society and the planet,
ultimately creating shareholder value.”
and focus to future Group We make the shift – advancing align and support the Group’s
ambitions. “We wanted to clearly the world through engineering. future direction, culture and
express why we exist, how we do “The new purpose expresses strategy.”
things and what we should focus how our innovative solutions He explains that a central idea
on to ensure further development create value, not only for our behind the strategy is enabling
and long-term success,” Widing customers and employees but important shifts in the world, such
explains. also for society and the planet, as digitalization and sustainability.
In the updated strategy much ultimately creating shareholder To that end, six strategic objectives
attention has been given to value,” Widing says. “It will further are being introduced: “shift to
development areas, measurable growth, sustainability shift, the
goals and concrete actions, such digital shift, customer’s first choice,
as systematic follow-ups to
SIX STRATEGIC the employer of choice and agile
determine customer and through the business cycle.”
OBJECTIVES
employee satisfaction.
• Shift to growth
Sandvik’s core values – THE INCREASED focus on
innovation, customer focus, fair • Digital shift growth (through acquisitions and
play and passion to win – are well • Sustainability shift organically) is partly a result of
embedded in the organization • Customer’s first choice Sandvik’s success in reaching
and will stay the same. They • Agile through cycle and retaining the kind of stability
define the required behaviors to and profitability that permit higher
• Employer of choice
contribute to the strategy and growth ambitions. The plans
purpose. The strategic objectives will include a more proactive
be followed up by systematic acquisition agenda and an
THE PREVIOUS vision is now measurement for maximum increased focus on new products
being replaced with a long-term transparency, accountability and solutions. “We have to grow
common purpose and narrative and actionability. in areas that are necessary to
statement: manage the shift to digitalization
18 MEET SANDVIK #1–2021STRATEGY | Stefan Widing
SHIFTING TO
GROWTH
Sandvik has updated its strategy for
an increased focus on growth. The
past years we have divested
underperforming businesses,
decentralized the organization and
become a much more resilient
company. From this stable platform
we will further increase the focus on
growth, digitalization, sustainability
and agility. We have introduced
five-year targets in each of the six
strategic objectives (see chart at
right) to ensure transparency and
follow through. We are continuing
with the financial targets set in 2019.
and the shift to sustainability,” to lead the way and remain at the managed to weather the storm.
says Widing, “and at the same forefront in developing technolo- “I believe we handled the
time ensure that we maintain a gies and solutions that enable the difficulties very well, holding on to
technology leadership in our core transition to more sustainable our margins and managing our
areas.” businesses,” he says. “Sustainability cost base in an agile way,” he
The digital objective is to be a excellence opens up many says.
leader in digital solutions in the business opportunities.” “Attracting the right compe-
industry and to grow the digital tences and a diverse workforce
customer offering. “Internally we SANDVIK SHOULD have a cost are key requisites for future
need to ensure efficiency through structure flexible enough to success,” he says. Customers
a seamless flow, supported by manage economic downturns form another crucial stakeholder
standardized business systems and allow for quick responses to group. “We want to advance the
at our sites,” he says. changing market conditions, way we measure and improve
Sustainability, continues Widing, Widing says. This flexibility was customer value and customer
has grown in importance to tested to the extreme when the satisfaction,” Widing says. “We
investors of all sizes, from Covid-19 pandemic dealt the need to continuously improve to
institutions to private households. order intake a severe blow in the continue to be our customer’s
“Our institutional owners expect us first half of 2020. But Sandvik first choice.”
MEET SANDVIK #1–2021 19SUSTAINABILITY | Electric heating
Svein G. Lund at the
Glassit facility in
Skjåk, Norway.
BREAKING GLASS
Norwegian company Glasopor is one of the few manufacturers
in the world that produce foam materials from recycled glass.
The company has boosted its profitability and eliminated its
carbon footprint by switching from gas to electricity
based on a Kanthal® electric heating system.
NESTLED IN THE rolling hills of the Skjåk por’s premium foam glass is 100 percent
countryside just west of Oslo is the Glassit recyclable and consists of 80 percent air,
factory, one of Europe’s most innovative which results in a bulk weight of 180 kg/m3.
glass recycling works. This plant, owned by To improve its environmental performance
Glasopor, recycles some 18 million wine and reduce costs, the company engaged
bottles and other glass products per year Kanthal, a Sandvik division, for a complete
and turns the waste into a granulated high- process conversion from gas to electric
tech foam material. heating.
This lightweight foam glass is used
mainly as filler in the construction of roads SINCE THE COMPANY was founded in
and railways, where it is especially effective 2002, Glasopor’s sales have gone from
in poor ground. It is also widely used as strength to strength, but as a modern
an insulation material in buildings. Glaso- recycler it was not entirely at ease with
20 MEET SANDVIK #1–2021SUSTAINABILITY | Electric heating
its own internal performance. Its gas
consumption, and therefore its energy
cost, was high and so too were its CO2
emissions – around 4,000 metric tons per
year.
After a thorough review of its operations,
the company decided to take the radical
step of switching its energy source from
gas to electricity, based on Kanthal® electric
heating technology, and it has never
looked back.
Although the switch itself from gas
to electricity entailed a substantial cost
saving, Glassit wanted a powerful heating
system that it could rely on for its glass
foaming process. In addition, the plan
called for the upgrade of furnace zones
The electric furnace at the Glassit facility requires
as well as service and maintenance to 37 percent less energy and emits no CO2.
keep the system working effectively and
efficiently far into the future. The choice wanted it to be beneficial in terms of our
was Tubothal® heating elements from future earnings.
Kanthal, recognized worldwide for its “Our aim was to reduce our energy
superior efficiency. consumption by 28 percent. Today our
research shows that the real reduction
THE COMPLETE CONVERSION from in energy is more like 37 percent – even
gas to electric was managed on-site in higher than we expected, which is
Norway. The team designed and simulated fantastic! And on top of that, we have
the conversion, calculating the required reduced our CO2 emissions to zero.”
power and element temperatures. In the Lund adds that the new system
planning process, technicians from Kant- is in the spirit of innovation that has
hal also provided a payback calculation to permeated the company’s development
facilitate the upgrade of three zones in the since its inception. It also fits in with
furnace. Glasopor’s policy to use local water power
resources rather than pump gas from the
THE DECISION TO switch from gas to North Sea.
electricity turned out to be more success- “Innovation is the driving force in this
ful than anyone had imagined. Glasopor company and the key to our success,”
Development Manager Svein G. Lund he says. “We think this project and the
explains: “In calculating this conversion we Kanthal system will help us to maintain
saw it as something of a high-risk project our position as the leading manufacturer
for us. Naturally we wanted to improve the of glass foam products, and that’s
environmental side – because of course something we are looking forward to
that’s very important for us – but we also telling the market about.”
MEET SANDVIK #1–2021 21SUSTAINABILITY | Green factory initiative
BUILDING A
GREENER FUTURE
Sustainable business development is key to the way employees
at the Langfang plant in China work. Lemon Jin, Site Manager,
talks about the efforts the facility has made to reduce emissions
and protect the environment.
The Sandvik Coromant plant in Langfang. ”Our ’Top 10 actions’ focus on energy savings,
China, is part of the global ”Green Factory and emission reductions and environmental
Sustainable Facilities” initiative the company protection,” says Lemon Jin, Site Manager at
has driven for several years. Located in China’s the Langfang plant. ”They cover almost every
Bohai economic rim region, the plant has deve- aspect of the daily operations of the plant and
loped a medium and long-term road map, as the way people work here, including clean pro-
well as a five-year plan, based on the Sandvik duction, resource recycling, water and electri-
Coromant Sustainable Development Strategy city savings, waste reduction and garbage
2030. Using professional assessment tools, classification and treatment.”
the plant will undergo yearly assessments, and
annual key performance indicator (KPI) goals AS ONE EXAMPLE of how to integrate
and Top 10 actions will be scheduled to reflect sustainability into the daily work Jin mentions
the results of these evaluations. the implementation of an “empty plate”
22 MEET SANDVIK #1–2021SUSTAINABILITY | Green factory initiative
campaign in the plant canteen, encouraging
Sustainability is an
people not to order more than they can eat to integrated part of
reduce food waste. everyday work.
Lemon Jin joined the Langfang plant in
2002, working his way up from a machine
operator to a plant manager. The Langfang
factory means a lot to him.
“Sandvik is a global group, and environmental
protection has always been a top priority for
us,” Jin says. “As part of Sandvik Coromant, we
always endeavor to live up to our commitment
to being a responsible corporate citizen. In
addition, Langfang is the city where I grew up
and continue to live, so we have to do our best
to protect the environment of our hometown ted. Whenever the outdoor temperature drops,
and be responsible to the city.” the chillers can be shut down to save energy.
In 2020, this made it possible for the plant to
ONE OF THE initiatives that that has been save 325 megawatt hours and reduced CO2
performed at the plant is a new heat-recycling emissions by 239 tons.
system to recycle heat generated from air The Langfang plant has also upgraded to a
compressors. The recycled boiler with higher efficiency that reduces emis-
heat was used to heat sions of nitrogen oxide from 90 milligrams per
the water for showers for cubic meter to 30 milligrams per cubic meter,
employees, reducing gas and cuts natural gas consumption by about
consumption by 4,000 30,000 cubic meters.
cubic meters and CO2 To increase the machine efficiency, the plant
emissions by 9.6 tons. replaced the old return oil pump, which consu-
“Because of the steadily med 2.2 kilowatts of power, with a new one that
Lemon Jin is Site increasing costs of dealing consumes only 0.7 kilowatts.
Manager at the
with waste, liquid-waste Together, all these measures will contribute
Langfang facility.
treatment equipment has to reducing the Langfang plant’s environmental
been installed. By using low-temperature va- footprint as much as possible.
cuum distillation technology, 97 percent of the
wastewater can be purified for reuse in produc-
tion. The remaining 3 percent is disposed of
by a qualified third party,” Jin says. In 2020, 69
tons of wastewater were recycled at the plant. THIS IS LANGFANG
The city of Langfang is in China’s Bohai economic
ANOTHER INITIATIVE is the installation of rim region, an important geographical position
a tank to collect rainwater from the building close to Beijing and Tianjin that boasts a
roof for irrigation of gardens, resulting in well-developed transportation network. The
water-consumption savings of more than 200 Sandvik Coromant Langfang plant, which in 2021
tons annually. is celebrating its 28th year of business, is situated
The plant has installed a cooling tower that here. The plant covers some 33,700 square
reduces the need for the chiller being opera- meters and has about 300 employees.
MEET SANDVIK #1–2021 23SUSTAINABILITY | Clean energy
SCW Systems uses
supercritical water
gasification to produce
renewable gas.
A SUPERCRITICAL MOMENT
Sandvik delivers advanced, seamless stainless steel tubes to
the world’s first industrial supercritical water gasifier that will
help the Netherlands gearing up for a renewable future.
AS COUNTRIES ACROSS the globe seek efficiently stored on a large scale, it can be
cleaner energy, for those that currently rely transported over long distances and can
on natural gas – such as the Netherlands be used in existing gas infrastructure. The
where it accounts for 40 percent of the only problem is not enough renewable gas
country’s energy consumption – simply can be produced to meet the Netherlands’
switching to renewable gas has many – let alone the world’s – needs.
benefits. Like natural gas, it can be This is something that SCW Systems
24 MEET SANDVIK #1–2021SUSTAINABILITY | Clean energy
“The technology uses the fourth natural phase of
water – the supercritical water phase.”
aims to change. “We develop novel tech- strial supercritical water gasifiers has begun.
nologies to convert organic waste streams To make its gasifiers, SCW Systems
into carbon-neutral, or even carbon-ne- needed advanced materials that could
gative, energy carriers,” explains Gerard withstand high temperatures and press-
Essing, CEO of SCW Systems. “The tech- ures, and most steels wouldn’t make the
nology uses the fourth natural phase of cut, according to Dyon Hermsen, Sales
water – the supercritical water phase – to Manager at Sandvik.
split molecules to almost an atomic level.
This largely untapped phase occurs when AFTER SEVERAL years of collaborative
temperatures reach 375°C and pressure is development and testing, the solution was
higher than 221 bar.” Sanicro®, Sandvik grades of nickel alloys
and high-alloy austenitic stainless steels.
WHEN WATER IS in the supercritical The material used in this specific solution
phase, organic substances such as sew- is characterized by its high structural
age, become extremely soluble. The water stability, creep strength and oxidation
becomes a solvent for organic components resistance and has been specifically
and a catalyst for a rapid and almost developed for use at material temperatures
complete conversion of the energy stored up to 700°C.
in organic components into gas. From this,
gas components such as green gas and AS SANDVIK CONTINUES to work with
hydrogen can be stored and used in the SCW Systems to support the industrial
same infrastructure as existing gas production of its gasifiers, the future for
supplies. As the process uses waste supercritical water gasification looks
to create hydrogen, it is completely promising. Recently, the Dutch
renewable. government set itself the goal of
Together with Gasunie New Energy, SCW producing 2 billion cubic meters of
Systems has successfully renewable gas by 2030, 60 percent of
developed, completed and tested the which is to be produced by supercritical
first industrial reactor. Currently, the world’s water technology. If successful, many
first full demonstration facility is under other countries that also have an extensive
construction and the production of the indu- gas infrastructure could well follow suit. too.
MEET SANDVIK #1–2021 25INTERVIEW | Nidhi Gohkale
Nidhi Gokhale
strongly believes in
a diverse and
inclusive workforce.
DIVERSITY FOR
BUSINESS EXCELLENCE
A diverse, inclusive workforce is good for business, says Nidhi
Gokhale, Head of HR at Sandvik Manufacturing Solutions.
But you need to walk the talk to make real change happen.
DIVERSITY AND INCLUSION (D&I) has never I graduated with honors in physics, but in the
been more important to businesses than right first year of my master’s I realized this was not the
now. Around the world, companies are pledging career I wanted. My father once told me to make
to create workplaces that include everyone, a career “out of your own strength and what you
regardless of gender, race, age or orientation. love.” I decided to complete a master’s in HR. I
moved to Pune, India, for my studies and it was
You’ve been in HR and with Sandvik for ten here that I eventually started working for Sandvik.
years. Why did you choose a career in HR and One day, during my master’s, a guest lecturer
why at Sandvik? came to speak to us from the nearby Sandvik
26 MEET SANDVIK #1–2021INTERVIEW | Nidhi Gokhale
plant. He’d been with the company for 35 years, to cultural constraints. In India, we opened a day-
and I remember wondering how a company had care center at Sandvik in Pune to attract female
gotten someone to stay for so long. After my employees. When I first returned from maternity
master’s, I applied for a one-year internship at leave, my son Hridaan used to spend his days
Sandvik and here I am, ten years later! at the spacious, cheerful center. Meanwhile, in
Sweden, the Female Leader Engineer initiative
Why do companies need to take D&I seriously? encourages newly graduated women to meet and
Research shows that more diversity in executive learn from their peers. Research shows that young
teams and leadership roles has a direct impact women are more likely to consider working for an
on a company performing better – when it comes organization when they have gender role models.
to creating a more inclusive culture but also for
productivity and profitability. We can see that What is your greatest challenge?
younger generations actively seek out teams The greatest challenge in D&I is making it a
of people from different backgrounds. Their central part of the business strategy, not just
approach to innovation and problem-solving is to an afterthought. It isn’t enough to talk about
bring diversity into the team because they know it diversity, it needs to be embedded in everything
will lead to a better end result. we do, from how we attract people to how we
develop, manage and retain them. At Sandvik, I
Why is D&I important to Sandvik? can confidently say that D&I is an integral part of
At Sandvik, we believe a diverse workforce who we are as a company.
is better suited to serving our customer base
around the world. In today’s globalized, digitized One of the sustainability goals of Sandvik is to
world, a diverse, inclusive workplace is central to have 33 percent female managers. Why have
a company’s ability to attract, develop and retain you set this goal and how will you achieve it?
the talent it needs to compete in the future. When it comes to gender diversity, studies show
It’s important to understand that true diversity that you need about one-third representation in
means respecting all the differences that define a group before you stop feeling like a minority, so
us as individuals – from gender to age, cultural our current levels are not enough. The proportion
and national backgrounds, orientation and ethnic- of women in our global workforce is 19.6 percent
ity, as well as differences in education, experience currently, while the women in managerial positions
and skills. A truly diverse company is one that increased in the past five years from 16.5 percent
encourages open thinking and creates a culture to 18.5 percent in 2020. We are also seeking to
of inclusion in which all individuals feel respected, broaden the ethnic and cultural diversity on the
are treated fairly and have the opportunity to executive teams. We currently have 19 percent
excel. non-Europeans on the division management
teams. So even though the numbers have been
Having worked in both India and Sweden, how gradually improving every year, we need to speed
do the two compare in terms of D&I? up the process. We’re working with greater intensity
Both countries share a similar challenge: how and more targeted interventions globally, and
to attract more women to traditionally male jobs. driving this as part of our business strategy.
But there is more of an uphill battle in India due
MEET SANDVIK #1–2021 27INTERVIEW | Nidhi Gokhale
The greatest challenge in
diversity and inclusion is to
make it a central part of the
business strategy.
What makes you feel the greatest sense of pride You started at Sandvik ten years ago. Where do
in your work? you see Sandvik in 2031?
Although we have a long way to go, I’m proud of At Sandvik, we offer a world of opportunities. Our
the growing numbers of women in our organization. diverse business and global network enables us
We have reworked our recruitment processes to all to take control of our career development and
make sure the wording in job vacancies is modern thrive to the best of our potential.
and inclusive. For instance, we avoid gender- I strongly believe that we will continue to grow
specific pronouns as much as possible. I’m proud and deliver value to our customers, suppliers and
of our 18-month Global Graduate Program, which shareholders while having a globally diverse work-
helps attract young talent, as selected graduates force from a wide range of cultural, geographical
develop an in-depth understanding of our busi- and professional backgrounds and with modern,
nesses through various rotations in their home agile and sustainable ways of working driving the
country and abroad. I’m proud of our other D&I shift in the industry in which we operate.
initiatives such as the nano-learning we recently
NIDHI’S TIPS FOR YOUNG WOMEN
rolled out and our Global Leadership program
Feed your passions: This enables you to be more
“Bridge,” which focuses on leading across bound-
focused and enjoy every aspect of your life.
aries and increasing cultural diversity awareness. Ask for help: Regardless of whether you are
On a personal level, I’m proud to work with so starting a new position or are a working mom with
many amazing people from all over the world. It’s kids at home or are simply looking for inspiration
so much more challenging, stimulating and fun to on what to do next, asking for help is a strength,
be a part of a diverse and inclusive environment. not a weakness.
28 MEET SANDVIK #1–2021ABOUT SANDVIK | CFO comment
SOLID RESULTS AND
POSITIVE MOMENTUM
3 QUESTIONS for the next downturn, whenever it
Tomas Eliasson, Chief comes.
Financial Officer (CFO) Our cost structure must be
flexible enough to handle both
at Sandvik.
ups and downs, as much as
How would you summarize the possible without incurring
first quarter report for 2021? one-off costs.
We saw very strong de- Acquisitions are an import-
mand on the mining side and ant component in the growth
a continued recovery in our strategy – what is important to
short-cycle business, such as event of sudden changes in the consider?
the automotive segment and market. We have a favorable starting
the engineering segment. It was What are your expectations position thanks to strong cash
also satisfying to see that we for 2021? flows, a solid balance sheet and
are once again delivering strong During the current recovery leading market positions. Now
profitability. The adjusted oper- we’re in there is strong focus on we need to implement what we
ating margin of 19.2 percent for identifying and delivering on the have set out to do, and we got
the quarter was one of our high- growth opportunities that exist off to a good start already in
est ever – another sign that we – both through acquisitions and 2020 when we announced the
have emerged from a turbulent organically. big acquisitions of CGTech and
year as a stronger, more stable But while we shift towards DSI Underground, despite all the
and more flexible company. growth, it is important that we uncertainty in the world.
But while we are recovering do it in a smart and carefully An important part of this work
in many of our operations, the thought-out way. We must be is to make acquisitions an even
pandemic is still ongoing, and ready to deal with challenges on more integrated part of how
demand continues to be low in the cost side and in the supply we run our businesses and
areas such as the aerospace chain in a stronger economy, proactively maintain a large
industry and oil/gas. This is a and at the same time ensure pipeline of interesting candi-
reminder that we must not lose that we constantly update our dates. Sandvik should be seen
focus and constantly be agile contingency plans so that we as a company you want to be
and ready to act quickly in the are even better equipped for acquired by and be a part of.
ACQUISITIONS COMPLETED
SANDVIK HAS completed the optimization. In 2019, CGTech had Miranda Tools, a manufacturer of
acquisition of U.S.-based CGTech, a revenues of about SEK 470 million high-speed steel and solid carbide
global market leader in software for and around 180 employees. round tools. In 2019, Miranda Tools
numerical control (NC/CNC) Sandvik has also completed the had revenues of about 200 million
simulation, verification and acquisition of the Indian company SEK and around 580 employees.
MEET SANDVIK #1–2021 29ABOUT SANDVIK | The Group
SANDVIK AT A GLANCE
Sandvik is a high-tech, global engineering group offering products
and services that enhance customer productivity, profitability and safety.
In 2020, the Group had approximately 37,000 employees and sales of
SEK 86 billion in more than 160 countries.
BUSINESS AREAS THE GROUP
SANDVIK MINING AND ROCK SOLUTIONS Revenues, MSEK
A leading supplier of equipment and tools, 120,000
service and technical solutions for the mining 100,000
industry and rock excavation within the
80,000
construction industry.
SHARE OF REVENUES 39% 60,000
SHARE OF ADJUSTED OPERATING PROFIT 46% 40,000
20,000
SANDVIK MANUFACTURING AND 0
2016 2017 2018 2019 2020
MACHINING SOLUTIONS
A market-leading manufacturer of tools and
tooling systems for advanced metal cutting, Adjusted operating profit,
expanding into digital and additive manufac- MSEK and adjusted operating
turing. margin, %1
SHARE OF REVENUES 38% %
20,000 20
SHARE OF ADJUSTED OPERATING PROFIT 41%
15,000 18
SANDVIK MATERIALS TECHNOLOGY
10,000 16
A leading developer and manufacturer of
advanced stainless steels, powder-based 5,000 14
alloys and special alloys for the most demand-
ing industries. 0 12
2016 2017 2018 2019 2020
SHARE OF REVENUES 16%
Adjusted operating profit
SHARE OF ADJUSTED OPERATING PROFIT 7% Adjusted operating margin
SANDVIK ROCK PROCESSING SOLUTIONS Adjusted earnings
A leading supplier of equipment, service per share, SEK1
and technical solutions for processing rock 12
and minerals in the mining and construction 10
industries.
8
SHARE OF REVENUES 7%
SHARE OF ADJUSTED OPERATING PROFIT 7% 6
4
2
INDICES AND MEMBERSHIPS
0
2016 2017 2018 2019 2020
1) Adjusted for items affecting comparability
30 MEET SANDVIK #1–2021ABOUT SANDVIK | The Group
MAIN CUSTOMER SEGMENTS
MINING
We deliver drill rigs, rock-drilling tools and systems, mobile and stationary
crushers, load and haul machines, tunneling equipment, continuous mining
and mechanical cutting equipment, as well as service and various solutions
for increasing automation, safety and customer productivity.
SHARE OF REVENUES 40%
ENGINEERING
Our tools and tooling systems for metal cutting as well as advanced materials
and components are used in engineering industries worldwide, improving
productivity, profitability, quality and safety as well as reducing environmental
impact. We are also a global leader in high-alloy metal powder.
SHARE OF REVENUES 23%
AUTOMOTIVE
Our tools and tooling systems for turning, milling and drilling in metals increase
productivity when manufacturing, for example, engines and transmissions. Our
stainless and high-alloy products are found in air conditioning and air bags,
among other things.
SHARE OF REVENUES 11%
ENERGY
We offer solutions for all forms of energy production, including clean and re-
newable energy. We supply high-alloy products, such as stainless steel tubes
for selected niches in the most demanding industries as well as tools and
tooling systems to satisfy the industry's metal-cutting needs.
SHARE OF REVENUES 10%
CONSTRUCTION
We offer products and services that increase safety and customer productivity
in breaking, drilling, crushing and screening within the construction industry.
Application areas include tunneling, quarrying, civil engineering, demolition and
recycling.
SHARE OF REVENUES 8%
AEROSPACE
We work closely with the world’s aerospace companies. As they apply new
materials to manufacture airplanes that are lighter, safer and more fuel effi-
cient advanced tooling solutions and lightweight materials are critical.
SHARE OF REVENUES 5%
MEET SANDVIK #1 –2021 31You can also read
