In a significant move reflecting its evolving strategic vision, Sandvik announced a realignment of its additive manufacturing (AM) business to concentrate on metal powder production. This was accompanied by strategic divestitures, including its minority stake in the Italian 3D printing service provider BEAMIT and parts of DWFritz Automation. Despite incurring approximately SEK 390 million in financial charges, these choices underline Sandvik’s focused commitment to innovation in AM technologies. The elaborate shift aims to bolster the company’s position as a leader in material science and automated solutions, setting the stage for a more concentrated and high-impact approach to the rapidly evolving field of additive manufacturing.
Sandvik’s Strategic Divestitures
Sandvik’s choice to relinquish its minority stake in BEAMIT and parts of DWFritz Automation is part of an overarching plan to better sharpen its focus on core competencies. The company initially acquired a 30% stake in BEAMIT in 2019, driven by the burgeoning demand for advanced AM partners equipped with specialized skills and resources necessary for industrial clients. However, with the revised strategy, Sandvik will now redirect its resources towards sectors it considers more impactful, particularly metal powder production. The relinquishment of its stake in BEAMIT aligns with a broader operational restructuring, which includes approximately SEK 140 million in write-downs from the BEAMIT investment. Despite this financial hit, Sandvik views this as a crucial step towards long-term objectives, thus marking a strategic recalibration rather than a retreat.
Similarly, the divestiture of parts of DWFritz Automation does not signal a withdrawal from the automation sector but rather a realigned focus to bolster its ZeroTouch automated measurement solutions. Sandvik retains its ZeroTouch unit, recognizing the essential role of sophisticated automated industrial measurement solutions in its broader strategy. ZeroTouch has been formally inaugurated as a distinct business unit dedicated to offering high-precision automated metrology services, which are integral to modern manufacturing processes. These specialized measurement solutions align seamlessly with Sandvik’s overarching theme of process optimization through digital innovation and hardware-enabling software solutions.
Commitment to Metal Powder Innovation
Sandvik’s commitment to metal powder solutions has spanned over two decades, with a pronounced acceleration in investments since 2013. A firm believer in the transformative potential of additive manufacturing, the company has introduced several groundbreaking products over the years. Innovations such as the Osprey 2507 super-duplex stainless steel and patented processes for 3D-printed cemented carbides underscore Sandvik’s deep-rooted expertise and forward-thinking approach in the material science domain. The recent introduction of Osprey HWTS 50 hot-work tool steel powder further testifies to Sandvik’s enduring dedication to material science advancements, particularly those tailored for AM technologies.
Designed to optimize printability in laser powder bed fusion systems, Osprey HWTS 50 seeks to streamline complex manufacturing processes in hot-work tooling applications. These applications include, but are not limited to, hot forming dies, extrusion, injection molding dies, and high-pressure die casting. According to Faraz Deirmina, a Principal Metallurgist at Sandvik, the use of AM applications in tool and die production enables near-surface conformal cooling channels, which significantly boost operational efficiency and the lifespan of tools. This necessitates not only the optimization of processing parameters but also the development of specialized chemistries specific to advanced manufacturing technologies.
Advancing Metrology and Automation
Sandvik’s strategic realignment is further evident in its advanced metrology and automation ventures. Even as it divested parts of DWFritz Automation, Sandvik chose to retain and inaugurate ZeroTouch, reinforcing its commitment to intertwining material science with digital innovation. ZeroTouch, now a distinct business unit within Sandvik, focuses on delivering sophisticated automated industrial measurement solutions. These solutions are pivotal in enhancing precision and efficiency in manufacturing processes, reflecting Sandvik’s principle of process optimization through technological advancement.
The ZeroTouch metrology solutions are meticulously designed to meet the ever-increasing demands for precision and efficiency in industrial operations. This is especially relevant in a landscape where digital automation is becoming the norm rather than the exception. By integrating advanced metrology systems with automated processes, Sandvik ensures that it stays at the forefront of technological innovation, aligning with broader industry trends that prioritize digital and automated systems in production. Such efforts underscore Sandvik’s strategic intent to remain competitive in a market that is rapidly evolving towards higher degrees of digital integration and automation.
Material Innovation Driving AM Applications
One of Sandvik’s key pillars in its AM strategy is its relentless focus on material innovation. The development of specialized metal powders optimized for AM processes is crucial not just for enhancing printability but also for revolutionizing the efficiency and operational capabilities of industrial applications. Sandvik’s focus on high-value materials aims to streamline complex manufacturing processes, thereby reinforcing its position as a leading innovator in the additive manufacturing sector.
The utilization of AM in tool and die production, exemplified by the introduction of Osprey HWTS 50, highlights how advanced material sciences can deliver tangible benefits in industrial settings. These innovations facilitate the implementation of near-net shape manufacturing techniques, reduce material waste, and improve turnaround times—critical factors for competitiveness in key industries such as automotive and aerospace. Sandvik’s dedication to pushing the boundaries in material science ensures that it remains a pivotal player capable of addressing the intricate demands of contemporary manufacturing applications.
Aligning with Industry Trends
In a major move underscoring its evolving strategic vision, Sandvik has announced a significant shift in its additive manufacturing (AM) business to focus more on metal powder production. This shift includes key divestitures, such as selling its minority stake in the Italian 3D printing service provider BEAMIT and parts of DWFritz Automation. Although these decisions resulted in around SEK 390 million in financial charges, they highlight Sandvik’s unwavering dedication to innovation in AM technologies. This thorough realignment aims to strengthen the company’s standing as a leader in material science and automated solutions. With a sharper focus on these areas, Sandvik is poised to take a more impactful and concentrated approach to the fast-evolving AM sector. This strategic pivot is designed to ensure that Sandvik remains at the forefront of technological advancements in the industry, underscoring its commitment to staying ahead of the curve and driving the future of manufacturing technologies.
