Sandvik says has no plans to sell SMT unit

STOCKHOLM, Oct 9 (Reuters) - Swedish engineering groupSandvik has looked at a possible sale of its SandvikMaterials Technology (SMT) business but decided not to proceedwith a deal, a company spokesman said on Tuesday.

The comments came after a newspaper report that thecompany's board had blocked a divestment of the unit, which haslagged the group in terms of profitability for years and wherenew management is leading a push to restructure the business.

"We have during this period evaluated some alternativescenarios with an external party, but reached the conclusionthat there is no reason to proceed with this process," SandvikInformation Director Jan Lissåker said.

"This means that there at present exist no plans to divestMaterials Technology, and that is a conclusion that the boardand executive management have reached jointly."

(Reporting by Sven Nordenstam; writing by Niklas Pollard)

((Niklas.Pollard@thomsonreuters.com; +46 70721 1110; ReutersMessaging: niklas.pollard.reuters.com@reuters.net))

Keywords: SANDVIK SMT/

Related Tags