Sandvik Stock

Sandvik AB, a Swedish multinational engineering giant, specializes in providing innovative products and services for a wide range of industries, including mining, rock excavation, rock drilling, rock processing (crushing and screening), metal cutting, and machining. Established in Gävleborg County, Sweden, in 1862, the company has a rich history of technological advancement. In 2023, Sandvik employed approximately 41,000 people worldwide and generated a revenue of 127 billion SEK, with its products and services reaching customers in over 170 countries.

Sandvik's journey began in the 1850s with Göran Fredrik Göransson, a pioneer in the use of the Bessemer process for steel production. He initially established a blast furnace in Edsken, Hofors Municipality, but the limited production capacity prompted the founding of Högbo Stål & Jernverks AB in 1862, in what would become the town of Sandviken. This move allowed for the company's rapid expansion, with exports to the UK, Germany, France, and Russia beginning as early as the 1860s.

The company was reorganized as Sandvikens Jernverks AB in 1868, and the Sandvik brand name first appeared at the Centennial International Exhibition in Philadelphia in 1876. The following year, Sandvik entered the US market. The company further solidified its position in the steel industry by becoming the first Swedish manufacturer of seamless rolled tubes in 1889, followed by significant investments in production facilities and methodology development throughout the 1890s.

The 20th century witnessed Sandvik's continued expansion and diversification. It was listed on the Stockholm Stock Exchange in 1901 and began producing hollow rock drill steels in 1907, establishing itself as a leading player in that market by the 1920s. The company opened its first foreign sales subsidiary in Birmingham, UK, in 1914, followed by subsidiaries in the United States (1919), France (1923), and Canada (1926).

Sandvik's foray into stainless steel production began in the 1920s, and by the 1930s, it was the first European company to implement the pilgering method for cold-rolling tubes at an industrial scale. By 1937, the company had established subsidiaries in 37 countries.

World War II presented challenges, but Sandvik's production of grenades for the Swedish military prevented a corporate crisis despite a halving of exports. The company's ambition to enter the cemented carbide tool market was realized in 1942 through a partnership with Lumalampan, a subsidiary of Kooperativa Förbundet. This collaboration led to the registration of the Sandvik Coromant brand for cemented carbide products, and by 1943, Sandvik was successfully producing metal-cutting tools.

The post-war period saw further expansion of cemented carbide production, with new factories built in Gimo (1951) and Stockholm (1953). Rock drills became the company's most important cemented carbide product, and by 1967, Sandvikens Jernverk had 40 subsidiaries and sold its products in 100 countries. The company officially changed its name to Sandvik AB in 1972.

The 1980s brought challenges for Sandvik, with declining profits and restructuring efforts leading to a loss in 1983, the first in 62 years. However, the company adapted, investing in Eastern Europe in 1989 and decentralizing its organization in 1984.

The 1990s saw Sandvik enter the diamond-coated carbide cutting insert market (1994) and develop the Safurex stainless steel (1996). The company also made significant acquisitions, gaining a majority stake in Kanthal AB, a specialist in electrical resistance products and high-temperature ceramic materials (1997), and taking full control of Tamrock, a mining equipment manufacturer (1997).

The turn of the millennium brought continued innovation and expansion for Sandvik. The company introduced the Automine system for automated and remote control of mining equipment (2001) and acquired a majority share in the German cutting tool manufacturer Walter AG (2002). Kanthal developed new alloy production methods using high-temperature powder metallurgy in 2004, and in 2009, Sandvik acquired Wolfram Bergbau, an Austrian tungsten producer, from mining to cemented-carbide powder.

Sandvik further diversified its operations in the 2010s, divesting its Process Systems and Mining Systems divisions in 2017, both related to conveyor technology. The company continued to acquire key assets, buying the Australian mine planning software provider Deswik in 2022.

In 2022, Sandvik Materials Technology, which included tubes, strip steel, medical wires, and Kanthal heating technology products, was spun off as a separate company called Alleima and listed on Nasdaq Stockholm.

The company continued its expansion in 2023, acquiring the software development company, Postability, in August and adopting a revised visual identity in September. This move highlighted Sandvik's commitment to innovation and its ongoing growth and development across various markets.

Sandvik's operations are divided into three business areas: Mining and rock solutions (52% of 2023 revenue), Rock processing solutions (9%), and Manufacturing and machining solutions (39%).

Mining and rock solutions

This business area provides vehicles for loading and hauling minerals, equipment for drilling, cutting, and other rock excavation tasks, along with supporting services and infrastructure like digital monitoring and automation systems.

Sandvik is known for its development of battery-powered, remotely monitored, and automated equipment. The TH665B, a 65-metric-ton capacity vehicle, was the world's largest battery-electric underground mining truck upon its 2022 launch. These trucks offer several advantages over diesel-powered models, including zero diesel exhaust emissions, less heat generation (beneficial in underground mines), and generally faster uphill speeds. Sandvik has also developed systems for quickly swapping battery packs on mining trucks and loaders with freshly charged ones, taking only a few minutes. Several mining companies, such as Rio Tinto, LKAB, Boliden, Torex Gold, Foran Mining, Rana Gruber, and Byrnecut, are known to use battery-electric Sandvik trucks and loaders.

As of 2024, Sandvik operates a fully automated battery-powered autonomous drill rig prototype at its test mine in Finland. This machine can plan drilling procedures, optimize electric power usage, change drill bits, and automatically return to a charging station when needed. This technology holds promise for improving both productivity and workplace safety.

Rock processing solutions

This business area produces mobile and stationary crushing and screening equipment for rock and mineral processing, as well as related tools and services.

Manufacturing and machining solutions

This business area manufactures tools, software, and other equipment for metal cutting, additive manufacturing, and metrology. Machining tools are sold under various brand names, including Sandvik Coromant and Dormer Pramet.

In 2023, Sandvik used precision machining and metrology equipment and software to create an AI-designed statue inspired by the styles of Michelangelo, Auguste Rodin, Käthe Kollwitz, Kōtarō Takamura, and Augusta Savage. The statue, crafted from stainless steel, weighs 500 kg, stands 1.5 meters tall, and is manufactured to a precision of 0.03 mm. It was displayed at the Swedish National Museum of Science and Technology.