Denmark-based process and material handling equipment supplier FLSmidth announced that, as of January 1, its material handling and mineral processing divisions will be merged into a single minerals division. Its cement and customer services groups will be maintained as separate divisions, and a new product companies division will be established.
According to the company, the new organizational structure will increase its operational efficiency as each division will have a more homogeneous business model, segmented customer approach and distinct management focus. The restricting will allow it to function more effectively in cyclical industries, where demand for products, projects and services differ over time.
“This is an organizational improvement that prepares FLSmidth for the coming upturn by increasing operational efficiency, simplifying the structure, refining management focus and laying out the foundation for globalizing our product companies. This gives us a strong platform for future value creation,” said Group CEO Thomas Schulz.
The minerals division, said the company, will focus on delivering systems to its key mining industries: coal, copper, gold, iron ore and fertilizer. The cement division will maintain sustained focus on complete plants and product lines.
FLSmidth separated its customer services group from its project business in 2012. Further development of the operations and maintenance business will have particularly high priority in the customer services division. The sale of wear parts, consumables and new service concepts to the minerals and cement industries will also be boosted in the division.
To “improve management focus and to use shared supply chain and back office functions,” FLSmidth drew several companies from its project divisions to form a stand-alone product companies division. The new division, according to the company, will allow improved globalization and growth of its product brands. The new division will serve FLSmidth’s copper, coal, iron ore, gold, fertilizer and cement business, 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.
Sandvik Mining Systems and Downer EDI have agreed to an arrangement that allows Downer to perform maintenance work on materials handling equipment operating at Sandvik’s customer sites.
