By Dominic Chopping 
 

STOCKHOLM--Swedish engineering company Sandvik (SAND.SK) said Monday its Sandvik Materials Technology (SMT) unit is closing down its die cutting business in Qingdao, China.

The company is also proposing to close down the die cutting sales office in Halesowen, UK, subject to consultation with the employees as required by local legislation.

The die cutting operation manufactures various cutting and creasing templates mainly for the packaging industry and the closure is in line with the company's strategy to focus more towards the energy segment and exit businesses considered non-core, it said.

The total number of employees is 57, of which 51 are in China and 6 in the UK.

It said the closure will have marginal impact on earnings before interest and tax for the SMT unit.

The operations will be phased out during three months and closure of the operation is expected to be finalized during the second quarter of 2015.

-Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter: @WSJNordics

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