Business area Sandvik Machining Solutions manufactures metal cutting tools and tooling systems for advanced industrial machining operations. Inserts (55%), round tools (18%) and tools (12%) account for the majority of revenues, while a smaller portion comes from tooling systems (7%). Products and solutions are sold under a number of world-leading brands, including Sandvik Coromant, Seco, Walter and Dormer Pramet.
Our customer segments strengthened in all regions. The customer segment aerospace, for example, continued to grow globally and the automotive sector was particularly strong in Asia. Sandvik Machining Solutions is in a strong position, with hundreds of thousands of customers spread around the world. However, competition and consolidation continue to increase in the global cutting tool industry.
Being no 1 or 2
2017 was a strong year for Sandvik Machining Solutions, with growth in all regions and product areas and we maintained our number one position in the market for machining products and solutions.
Focus on core
During the year, we focused on our Value Selling Concept, which continued to support positive price effects. The Value Selling Concept enables us to offer our customers added value, with tools and solutions that improve performance and increase customers’ competitiveness. This meets a growing demand for higher production efficiency in, for example China, where operational efficiency and productivity have become major business drivers.
Efficiency and continuous improvements
Operational and efficiency improvements, such as lean methodology, benchmarking internal best practices and other efforts, helped lower production costs. Restructuring and factory closures within the business area also contributed to the year’s positive results.
Within our own operations, Sandvik Machining Solutions’ energy use increased by 20 GWh in 2017, which was 3 percent higher than the year before. In relation to a 8 percent organic growth, this corresponds to a relative reduction in energy usage. Waste volumes remained unchanged compared to 2016, an improvement in relation to growth. We pay customers for their worn inserts and solid carbide tools through local buy-back programs. The recycled material is subsequently re-used in our production.
In addition to actively working with recycling of inserts and solid carbide products, we successfully help our customers improve their operational efficiency. We also support customers to lower their energy consumption through improvements in tool speed and tool life. Sandvik Machining Solutions advises customers on how to reduce costs and increase efficiency through our productivity improvement programs.