Company Announcement to the Danish Financial Supervisory Authority No.
16-2014, 13 August 2014
In continuation of the 2013 strategy health-check, it has been decided to change
FLSmidth's organisational structure. As of 1 January 2015, FLSmidth will be
organised in 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
globalisation and growth of FLSmidth's unique product brands. (For an overview
of the managerial consequences, see Company Announcement No. 17-2014, 13 August
The new organisational structure increases operational efficiency as each
division will have a more homogeneous business model, segmented customer
approach and distinct management focus. As a consequence of the reorganisation
FLSmidth 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," Group CEO
Thomas Schulz says.
The new organisation will consist of the four divisions;
The Minerals division will focus on delivering systems to our key mining
industries: coal, copper, gold, iron ore and fertilizer. The business covers
mineral processing and material handling technologies and is a merger of the
divisions currently known as Mineral Processing and Material Handling. The new
Minerals division will unleash a significant potential for FLSmidth to become
the strongest project and systems provider in the minerals industries.
FLSmidth has more than 130 years of experience and is the global cement
industry's leading technology supplier of complete plants and production lines.
The dedicated Cement division will enable a sustained focus on complete plants
and product lines, and especially the further development of Engineering,
Procurement and Construction (EPC) offerings will ensure a continued strong
position in the cement industry.
In 2012, Customer Services was separated from the project business in order to
make growth of the business area a clear priority within FLSmidth and to foster
a strong service culture and mindset. FLSmidth will continue to leverage the
opportunities for growth and development in the service areas through a
dedicated Customer Services division.
The further development of the Operations & Maintenance (O&M) 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.
In order to ensure dedicated management focus and to utilise shared supply chain
and back office functions, FLSmidth separate a number of product companies from
the project divisions to form a stand-alone Product Companies division.
The Product Companies division enables FLSmidth to release a significant
potential for globalising and growing the company's unique product brands. The
new division will serve FLSmidth's six key industries; copper, coal, iron ore,
gold, fertilizer and cement, the Minerals and Cement divisions as well as
The Product Companies division will include the FLSmidth companies: ABON,
Buffalo, Pfister, Ventomatic, Krebs, MAAG Gear, Airtech, Möller and Automation.
FLSmidth will, from 1 January 2015, externally report the financial performance
of all four divisions.
Restated segment information for the last 12 quarters will be published in Q4
Please address any questions regarding this announcement to Group CEO Thomas
Schulz, FLSmidth & Co. A/S at +45 36 18 18 00.
For further information about FLSmidth, please visit www.flsmidth.com
Pernille Friis Andersen
Corporate Communications & Investor Relations
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