The current Material Handling and Mineral Processing divisions will be merged into a Minerals division. Cement and Customer Services will be maintained as separate divisions., while a new Product Companies division will be created.
The Minerals division will focus on delivering systems to the coal, copper, gold, iron ore and fertilizer mining industries. The business covers mineral processing and material handling technologies.
The dedicated Cement division will enable FLSmidth to focus on complete plants and product lines, and the further development of engineering, procurement and construction (EPC) offerings.
The Customer Services division will continue, facilitating the further development of the Operations & Maintenance (O&M) business, and the sale of wear parts, consumables and new service concepts to the minerals and cement industries.
FLSmidth will also separate a number of product companies from the project divisions to form a stand-alone Product Companies division, in order to ensure a dedicated management focus and to utilise shared supply chain and back office functions. The new division will serve FLSmidth’s six key industries: copper, coal, iron ore, gold, fertilizer and cement, as well as the Minerals and Cement divisions and adjacent industries. The Product Companies division will include ABON, Buffalo, Pfister, Ventomatic, Krebs, MAAG Gear, Airtech, Möller and Automation.
FLSmidth says that following the reorganisation, it will be well positioned to reap the benefits of being in cyclical industries, where demand for products, projects and services differ over time.
“This is an organisational improvement that prepares FLSmidth for the coming upturn by increasing operational efficiency, simplifying the structure, refining management focus and laying out the foundation for globalising our product companies. This gives us a strong platform for future value creation,” said FLSmidth Group CEO Thomas Schulz.
