Sandvik says has no plans to sell SMT unit

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

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

"We have during this period evaluated some alternative scenarios with an external party, but reached the conclusion that there is no reason to proceed with this process," Sandvik Information Director Jan Lissåker said.

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

(Reporting by Sven Nordenstam; writing by Niklas Pollard)

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Keywords: SANDVIK SMT/