Sandvik to Close Gusab Steel Plant

In line with their plan to increase efficiency and adapt production capacity within the specialty steel business area, Sandvik have begun plans to shut down their Gusan Stainless AB plant at Mjolby, Sweden. Closure is expected to be complete some time in 2003.

This plant which produces spring steels was chosen for closure as the wire division has a reputation for unsatisfactory profitability. A production capacity that was too high was sited as a reason for poor profits in this area.

By reducing their production units from five to four, Sandvik hope to reduce costs and increase the profitability of the wire division.

The Gusab brand will continue to exits, but will be manufactured at other locations. Consequently, about 20 of the employees from the Gusab plant will be offered positions at other locations, wile the remainder will be looked after by support programmes in line with negotiations with trade unions.

For more information about spring steel click here.

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