Continuing with its 2013 strategy health-check, FLSmidth’s organizational structure will be divided into two project divisions, a product division and a service division. The Material Handling and Mineral Processing divisions will be merged into a Minerals division. Cement and Customer Services will be maintained as separate divisions. A new Product Companies division will be created to foster globalization and growth of FLSmidth’s product brands.
The new organizational structure increases operational efficiency, as each division will have a more homogeneous business model, segmented customer approach and distinct management focus, according to the company. FLSmidth will be better positioned to reap the benefits of being 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 will focus on delivering systems to key mining industries: coal, copper, gold, iron ore and fertilizer. The business covers mineral processing and material handling technologies. According to Schulz, the new Minerals division will unleash a significant potential for FLSmidth to become the strongest project and systems provider in the minerals industries.
The company recently appointed Manfred Schaffer president of the new Minerals division and member of group executive management. He will lead the transition to the new Minerals division, which will be completed by January 1.