On Wednesday, the company said it wants to shed welding wire and stainless wire operations, which in 2016 generated revenues of about SEK700 million, or about US$80 million in revenue. 

“These businesses are subject to intense competition and Sandvik Materials Technology does not hold a (leading) market position,” the company said. 

However, it said it will retain its Kanthal industrial heating wire operation, which is considered core to its business due to strong market position and growth potential. The operation generated SEK800 million in revenue last year, or about US$91.4 million. 

"The divestment of the welding and stainless wire businesses will make Sandvik Materials Technology more focused on its core operations -- advanced stainless steels and special alloys for the most demanding industries. We will continue to develop our core businesses to ensure long-term value creation,” said Sandvik president Petra Einarsson. 

Along with the divestment, the company is reorganizing around four product areas: tube, Kanthal, powder and strip,

“Each product area will be responsible and accountable for the entire value chain and its results,” Einarsson said. 

The new structure will go into effect on 1 July 2017.