Sandvik Materials Technology has signed an agreement to divest the welding wire operations to ESAB, a global leader in the welding industry and part of Colfax Corporation. The agreement completes the main step in the divestment plan for welding wire and stainless wire. The deal includes the production units in Sandviken, Sweden and Scranton, US as well as the global sales and product management organization; in total approximately 120 employees. Revenues for the welding wire business amounted to 470 million SEK in 2016. The cash flow impact from the transaction is expected to be positive. Closing of the divestment is estimated to be completed within 2-4 months, following customary closing conditions. The process to exit the stainless wire business, with about 270 million SEK in sales 2016, is progressing according to plan.
