Growth, digitalization and sustainability
Shift to growth
We strengthened our market position in both the premium- and mid-market. Through leveraging earlier acquisitions, we increased our market share in round tools and micro tools. The acquisition of 95 percent of the shares of Premier Machine Tools Limited, an Irish medical machining solutions provider, supported our growth in the medical segment. With the acquisition of Buffalo Tungsten Inc. (BTI), a leading US-based manufacturer of tungsten metal powder and tungsten carbide powder, we increased our presence in North America.
A number of acquisitions strengthened our software offering. Postability, a Canadian company that develops post processors for Mastercam (acquired by Sandvik in 2021), strengthens our Computer Aided Manufacturing (CAM) portfolio. Esco GmbH, a German supplier of software solutions for power skiving, a gear machining technology, gives us a position in a high-growth premium niche market driven by increasing automotive electrification. We acquired a minority stake in up2parts, a German closed loop manufacturing software start-up that aims to commercialize software which optimizes manufacturing processes. Sandvik also signed an agreement to acquire pro-micron GmbH, a German-based supplier of sensorized tools and automation software.
We continued to introduce new innovations which improved our New Sales Ratio (NSR). We launched CoroCut® 2, a precision system which offers a new level of process security and productivity for machining, and new steel turning grades, tailored to capture opportunities within the mid-market and strengthen our position in inserts. Software sales grew in line with the market.
Digital shift
By continuing to integrate the products from previously acquired brands, we have continued to enhance our already world-leading solutions. We began leveraging our strong market presence in tools hardware and software solutions to provide combined offerings. CoroCut® QD for Y-axis parting, for example, combines modern CNC machines and challenging conventional machining directions for productivity and tool life gains, and is now integrated into some of our CAM software solutions. We also integrated the CoroPlus® Tool Library from Sandvik Coromant into our CAM softwares Cimatron™, Mastercam® and GibbsCAM™, creating a more seamless user experience.
We saw high demand for our software solutions through both license and maintenance contracts that provide customers with up-to-date products and the necessary training and support. With new technologies and Artificial Intelligence (AI) we can capture a lot of data to improve processes and make forecasts and we have started working with proof of concept solutions to enable further automation in the industry.
Sustainability shift
In our cutting tools offering we introduce on average eight new products a day, each of which helps our customers reduce energy and raw material waste. We continuously invest in R&D to make our tools more efficient and to reduce the environmental impact of producing and distributing them. We continue to buy back used tools from our customers and recycle them to make new tools. We started the development of tools using our Bergla® tungsten carbide powder, made entirely of recycled material, this year. We increased the circularity rate in our powders generally and made progress with the reconditioning of solid carbide tools.
Our software solutions and industrial metrology applications help customers reduce waste and increase efficiency by ensuring more predictable outcomes and quickly eliminating deviations in the machining phase. We are developing a CO2 tracking software tool that will help customers reduce their carbon emissions.