Sandvik pens $200MM supply contract for nuke industry

Sandvik Materials Technology (SAND) signed a multi-year supply agreement for steam generator tubes for the nuclear power industry. The agreement is valued at $200MM (SEK 1.5 billion) and deliveries are scheduled to commence in 2012 and continue through 2014.

The customer is the Chinese company Harbin Electric Corporation (QHD) Heavy Equipment Company Ltd and the steam generator tubes will be used in nuclear power plants in China.

As a consequence of this agreement and the very high demand from the nuclear power industry, Sandvik’s Board has approved a further expansion of production capacity for steam generator tubes. This will take place at Sandvik Materials Technology’s plants in Sweden and the Czech Republic.

“The investment further strengthens Sandvik’s position as a leading supplier of steam generator tubes for the rapidly growing nuclear power industry. Including the order from Harbin Electric, we have signed supply agreements for a total value of SEK 8 billion in this area since the beginning of 2009,” says Peter Gossas, President of Sandvik Materials Technology.

Sandviken, 3 February 2010
Sandvik Aktiebolag (publ)

Sandvik AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 09:30 a.m. on 3 February 2009.

Sandvik is a global industrial group with advanced products and world-leading positions in selected areas – tools for metal cutting, equipment and tools for the mining and construction industries, stainless materials, special alloys, metallic and ceramic resistance materials as well as process systems. In 2009, the Group had about 44,000 employees and representation in 130 countries, with annual sales of nearly SEK 72,000 M.

Sandvik Materials Technology is a business area within the Sandvik Group and a world-leading manufacturer of high value-added products in advanced stainless materials, special alloys, metallic and ceramic resistance materials, as well as process systems. Annual sales in 2009 were about SEK 15,000 M with 8,200 employees. The product area comprises Tube, Strip, Kanthal, Process Systems and MedTech.

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