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A Report On: Sandvik Asia

The document provides an overview of Sandvik Asia and details from an industrial visit to their facilities. It summarizes that Sandvik is a global engineering company focused on tooling, mining, and materials technology. The visit included their Coromant division, which produces cutting tools, and their tap manufacturing division, which produces taps and dies for threading metal. Both divisions emphasized new technologies and close relationships with customers.

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Sankalp Prabhakar Kale
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143 views

A Report On: Sandvik Asia

The document provides an overview of Sandvik Asia and details from an industrial visit to their facilities. It summarizes that Sandvik is a global engineering company focused on tooling, mining, and materials technology. The visit included their Coromant division, which produces cutting tools, and their tap manufacturing division, which produces taps and dies for threading metal. Both divisions emphasized new technologies and close relationships with customers.

Uploaded by

Sankalp Prabhakar Kale
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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A REPORT ON

INDUSTRIAL VISIT TO

SANDVIK ASIA

By

VIKRAM V. NAGPURKAR
Company Profile

Sandvik is a high-technology engineering group, with advanced products and


world-leading positions in selected niches. Operations comprise the Tooling, Mining and
Construction, and the Materials Technology business areas. The Group has 44,000
employees, representation in 130 countries, with annual sales of approximately SEK 72
billion.

Since its founding in Sandviken in Sweden in 1862, Sandvik has developed into a
global enterprise, with a multifaceted expertise in the field of materials technology. The
business philosophy has been largely the same through the years: Sandvik shall be the
leader in selected areas. Products are based on high value content and are developed in
close cooperation with customers. Quality is the guiding principle in the global
operations.

Goal: improve customers' productivity


The Group’s goal is to actively contribute to improving the customers’
productivity and, consequently, their profitability. The products and services offered by
Sandvik shall provide maximum value to customers in terms of performance, quality,
speed, safety, flexibility and total economy.
Sandvik is focused on growth. Sales have nearly doubled during the past five years. To
create a fertile ground on which to base a continued, strong expansion, operations are
concentrated to three core areas.
 The Tooling business area focuses mainly on tools and tooling systems for
metalworking applications. Major customers include companies in the automotive
and aerospace industries.
 Mining and Construction specializes in rock-working equipment and tools used in
mining and civil engineering worldwide.
 Materials Technology develops mainly products in stainless steel, special alloys
and resistance heating materials as well as process systems. Customers are to be
found in most industrial segments.
Sandvik’s operations are based on unique expertise in materials technology and extensive
insight into customer processes. This combination has provided world-leading positions
in three primary areas:

 Tools for metal cutting in cemented carbide and high-speed steel as well as
components in cemented carbide and other hard materials.
 Equipment and tools for the mining and construction industries.
 Products in advanced stainless materials, titanium, special alloys, metallic and
ceramic resistance materials and process systems.

Three per cent invested in research and development


The Group’s successful development is a result of a goal-oriented investment in
research, development and quality assurance. Sandvik invests nearly SEK 2.8 billion
annually, corresponding to 3% of the Group’s total sales, in these areas. More than 2,300
employees around the world work in this area, of which many are specialists with
advanced educational backgrounds and skills.
Sandvik’s long-term and consistent strategy is based on the interaction between a
number of strength factors, including advanced and broad R&D activities, highly value
added products, own manufacturing, direct sales to customers, own market channels and
effective logistics systems, financial strength and a strong corporate culture.
The significance of Sandvik as an advanced knowledge company is becoming
increasingly apparent. In this respect, the Group’s IT development plays a central role for
continued business development, in which e-commerce is an important component.
Information technology is concentrated to areas that enhance customer benefits, improve
productivity and strengthen profitability. This will give the Group distinct competitive
advantages and actively contribute to continued profitable growth for the Sandvik Group.
Concept and strategy
Sandvik is a high-technology engineering group with operations in 130 countries,
44,000 employees and annual sales of more than SEK 72 billion. The Group occupies a
world-leading position in three selected areas.

THREE CORE BUSINESSES


Sandvik Tooling specializes in cemented-carbide and high-speed steel tools for
metalworking. Sandvik Mining and Construction focuses on equipment, tools and service
for rock excavation. Sandvik Materials Technology manufactures products in stainless
steel, special alloys and resistance materials for many different areas of application in
which demands on performance are very high. The Sandvik Group also includes, since
1974, the independent, publicly listed Seco Tools group.
Sandvik's customers are active in many areas, including the automotive and
aerospace industries, mining and construction operations, chemicals, oil and gas, power,
pulp and paper, household appliances, electronics, medical technology and
pharmaceuticals industries. Approximately two thirds of the products are industrial-
consumption products and one third consists of investment goods.
A LONG-TERM STRATEGY FOR PROFITABLE GROWTH

the Group’s financial objectives (average per year):


Growth in sales 8 % organically, acquisition to be added
Return on capital employed 25 % for existing operations
Dividend as percentage at least 50 %
of earnings per share
Debt/equity ratio, net 0.7-1.0

The Sandvik Group’s strategy is based on a unique business philosophy that


involves the interaction of many different strength factors shown in the illustration below.
Sandvik has created a positive cycle, which in turn leads to a spiral of success.

The Sandvik Group conducts operations within three core areas - Sandvik
Tooling, Sandvik Mining and Construction, Sandvik Materials Technology - with
responsibility for research and development (R&D), production and sales of their
respective products. Seco Tools, an independent, publicly listed company, is also a
member of the group. 
SANDVIK COROMANT
This is one of the two divisions that we visited at Sandvik. Sandvik Coromant is
the world's leading manufacturer of cutting tools for the metalworking industry, with
more than 25,000 products. But that's only one side of the coin! In 60 countries around
the world, around the clock, thousands of specialists deliver solutions to our customers.
Sandvik was making ingot steel using the Bessemer method long before anyone
else. A trader named Göran Fredrik Göransson succeeded in producing steel in large
quantities to meet growing demand. On the back of this innovation, Sandvik was founded
in 1862. Göransson was a pioneer in other areas and was ahead of his time in what’s now
known as relationship marketing.
He established two basic values that we still believe in today: constant
technological development and close contact with our customers. Staying close to
customers is more than just marketing; it’s the best way to develop cutting edge
technology that works in the real world.
Product innovations continued and in 1942 a small cemented carbide tools
department was started and the Sandvik Coromant brand name was registered. In 1952,
an entire production unit was established in Gimo, central Sweden, now the main plant
for tools and carbide inserts.
Some facts about Sandvik Coromant

 Sandvik Coromant is the world's leading producer of tools for turning, milling and
drilling.
 Head office in Sandviken, Sweden.
 In more than 25 well-equipped Productivity Centers customers learn about tooling
solutions for increased productivity.

The unrivalled range of cutting tools from Sandvik


Coromant are what really makes Coromant Capto the
number one tool holding system on the market - and with
Coromant Capto at the foundation of all Sandvik Coromant
tooling developments, your future is in good hands.

Available in 6 sizes, there is a flexible Coromant Capto


solution for your every need: C3-C10, Dia. 32, 40, 50, 63,
80, 100.

Tap manufacturing division

The plant has its production shop floor on the first floor and is equipped with
environmental friendly features such as solar heaters, air-coolers, state-of-the art fire-
fighting systems and a rain-harvesting plant.

Over 80% of the plant's production will be exported and 20% will support the
domestic market. Products will be sent to a central warehouse in Singapore to be
dispatched to other locations worldwide.

Taps and dies are tools for cutting threads. A tap is a bolt-like tool for making
female threads. A die is a nut-like tool for making male threads. Taps and dies can make
many "impossible" repairs possible, even easy.

Both tools have threads, a little like the threads on nuts and bolts, but the threads
on taps and dies have cutting edges to cut threads in smooth metal. A tap screws into a
smooth hole and makes it into a threaded hole; a die puts threads onto a formerly smooth
shaft.

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