Displaying items by tag: Denmark
Denmark: M&J Recycling has appointed René Normann Christensen as its new CEO, effective immediately. Christensen brings extensive leadership from previous CEO roles at Kohberg Bakery Group, engineering firm Glunz & Jensen and circular food packaging producer Plus Pack. He has a degree in Finance from Syddansk Universitet.
M&J Recycling says that Normann Christensen’s appointment marks a strategic step towards the company's next growth phase. It thanked previous CEO Uffe Hansen for his ‘tremendous job’ in building a new, resilient organisation, ready for future growth.
ChairCarsten Knudsen said “After a successful carve out from Metso in 2021, M&J Recycling has now reached a point on the growth journey where it is necessary to change focus and increase momentum. There is a significant global potential for M&J’s industrial waste shredders, and I am confident that René Normann Christensen will, as the new CEO, strengthen the organisation and take M&J Recycling to the next level.”
Europe: Cementir Group launched D-Carb, a 15% reduced-CO₂ white cement, in Europe on 24 April 2024. The producer says that D-Carb cement maintains the early-age performance of its Aalborg White high early strength white cement, while helping builders to conform to the highest sustainability certifications. D-Carb cement achieves its emissions reduction without diminishing the product’s brightness. Following this, Cementir Group plans to roll out D-Carb cement across its global markets.
Group product development manager Stefano Zampaletta said "Performance and the white colour are key features of D-Carb, and exploring suitable raw materials and their combinations have been crucial in the product assessment. This has resulted in the accurate selection of pure, very light limestone from a stable source, which improves and stabilises the whiteness. Additionally, leveraging limestone fineness and particle size distribution, D-Carb ensures enhanced and consistent rheology, ideal for wet-cast applications, such as self-compacting concrete. These distinctive rheological properties allow for concrete finishes that resemble marble surfaces. Moreover, the enhanced synergy and compatibility between cement and admixture cater to a wide range of white cement applications."
Chief sales, marketing and commercial development officer Michele Di Marino said "We are thrilled to introduce D-Carb, our new umbrella brand for lower carbon cements, as part of Cementir Group’s ongoing commitment to address environmental challenges and climate change. As a leading white cement producer, the successful rollout of D-Carb is pivotal in advancing our Net Zero Emissions ambition."
Denmark: A collaborative effort involving the Technological Institute, DTU, FLSmidth Cement, and Lhoist is underway in Denmark to test a new technology designed to significantly reduce CO2 emissions in the cement industry. The initiative, known as the Newcement project, is part of the INNO-CCUS partnership which embraces projects focusing on carbon capture, utilisation and storage (CCUS) and is supported by an investment of US$1.12m from the Innovation Fund. Jens Christiansen, Section Manager at the Technological Institute and Project Manager of the collaboration, aims for the technology to move from laboratory tests to a full-scale demonstration in a real cement production plant.
Denmark: Norway-based Geminor has appointed Per Mernelius as Country Manager for Geminor Denmark. He succeeds Kasper Thomsen in the position, who was recently appointed as the Operations Director for Geminor Group. Mernelius is currently the Country Manager for Sweden and he will add the new responsibilities to this role. Initially, he will be in charge of the Danish market for 12 months, pending the appointment of a new country manager in Denmark.
Mernelius commented “Denmark and Sweden are our two biggest downstream markets, with nearly 1Mt of imported refuse-derived fuel/solid recovered fuel in 2023. As such, many similarities open up for synergies in the coming year. An important factor is logistics, and how we can coordinate the two markets for more efficient operations. Our ambition is to grow further and to cater for the existing over-capacity within energy recovery in Scandinavia.”
Mernelius has worked for Geminor since 2016. Before this he worked for Sweden-based energy supplier Jönköping Energi. He is a graduate of the Swedish University of Agricultural Sciences.
Ignacio Arroyo appointed plant director at Aalborg Portland
21 February 2024Denmark: Aalborg Portland has appointed Ignacio Arroyo as its plant director.
Arroyo started his career working for Holcim in 1998 as a project manager at the Carboneras Plant in Spain. Other roles in Spain followed before he became the Operation Manager at the Yeles plant in 2012. He then worked as Technical Director and Plant Manager at Holcim’s National Cement Factory in Abu Dhabi, UAE. Subsequent roles included Plant Manager positions in Holcim Romania and Lafarge Canada.
FLSmidth considers the future
31 January 2024There have been two major announcements in the cement sector this week. The first was that Holcim is preparing to divest its business in the US via a spin-off and full capital market separation. The second was that FLSmidth is thinking about selling its cement equipment business. Both stories are huge so we will cover them both. This week we will focus on FLSmidth and Holcim will follow next time.
Both news stories came as something of a shock. Yet FLSmidth’s plans were not surprising given the divestment of MAAG gears and drives business earlier in January 2024 and several years of tough trading conditions in the sector generally. Yet, as one commentator on the Global Cement LinkedIn Group put it, it feels like “the end of an era.”
First a little history. FLSmidth has been in business for over 140 years and has been indelibly linked to the cement market throughout this time. Its first big cement order was in 1887, it built its own plant in Aalborg in 1889 and it started selling rotary kilns in 1899. By 1957, at the time of its 75th anniversary, it was estimated that 40% of the world’s cement was manufactured in equipment supplied by FLSmidth. Many other advancements and milestones followed but signs of the modern business’ focus on mining can be detected in the acquisition of US-based Fuller Company in 1990, the sale of Aalborg Portland in 2002 and the purchase of ThyssenKrupp Industrial Solutions’ mining business in 2021.
FLSmidth described its reasoning for a potential divestment of its cement business and focusing on mining as follows: “our industries, and in turn, the appropriate operating models which best serve them, have diverged. Consequently, combining our two organisations under one ownership is now forcing more operational friction than benefit.” It took pains to state that it hopes to sell its cement business in one piece whereupon it can continue to grow under new ownership and “maximise its full potential.”
FLSmidth’s strategy for selling its cement equipment business appears to have taken the form of separating out the cement business, making it look as strong as possible and then publicly announcing that it is “exploring divestment options.” This is different from many other corporate divestments that only become public once a deal with a prospective buyer has been secured. FLSmidth has been preparing for a potential divestment of the division internally through its ‘pure play’ strategies and focusing more recently on product, services and technology rather than project risks. It said that the MAAG sale had shown it that there was interest in buying the cement business. However, no potential buyers have been disclosed at this time. In a conference call the company said that it was hoping for five to 10 interested parties and it would expect these to be either industrial buyers or financial entities.
One of the callers homed in on the attempts by ThyssenKrupp to sell the cement division of its subsidiary ThyssenKrupp Industrial Solutions (TKIS) in 2020 following a restructuring drive. It changed its mind in 2021 and ended up selling its mining division to FLSmidth instead. In response to any comparison, FLSmidth asserted that it was preparing to sell a significantly different asset to TKIS, not least due to its careful steering away from project-based risk.
The wider business backdrop to this decision has been the rise of the Chinese cement sector since the late 1990s, persistent global production overcapacity, the setting of net zero CO2 emission targets globally and, more recently, logistic and economic shocks arising from the Covid-19 pandemic and geopolitical events. New cement production line projects are now frequently managed by China-based equipment suppliers in many territories, with the exception of North America. It is worth noting here that some of the largest China-based cement equipment suppliers are subsidiaries of the government. The Chinese government has also supported the construction of new plants outside its borders through its Belt and Road initiative. Protectionist investment policies implemented by western governments to support industry transitioning to net zero is in part a response to this in the general economy. Cement equipment suppliers from outside of China can and do build lines on a regular basis but they tend to concentrate on parts of plants, such as mills, or specific technologies and services. FLSmidth is a good example of this transition with its renewed focus on the green transition.
The decision by FLSmidth to consider selling its cement business marks another sign that the cement industry is changing. The transition to net zero puts Europe-based suppliers in a good position given that the region is currently leading with carbon capture projects. A retrofit boom for cement plants (and customers) being made to pay for CO2 emissions could change the dynamic for the cement equipment sector as the focus shifts from building kilns to capturing CO2. And companies like FLSmidth are well placed to benefit from this. Then again it may just end up being business as usual. Either way, any eventual change in the ownership of FLSmidth’s cement division does indeed mark the end of an era.
Next week: Holcim’s plans in the US
FLSmidth Cement looks ahead to new chapter
31 January 2024Denmark: FLSmidth has discussed its decision to sell FLSmidth Cement. The company said that the cement and mining industries it serves have diverged, along with the appropriate operating models which best serve them. The continuing combination of FLSmidth Cement and FLSmidth’s mining business now presents ‘more operational friction than benefit.’ The supplier took ‘careful consideration’ of the best interests of all parties affected by the separation.
FLSmidth built its first cement plant in 1887, and pioneered the use of optimisation software in 1969. The FLSmidth Cement digital leadership team will now focus on delivering cement-specific smart and connected services for its customers.
FLSmidth Cement president Christopher Ashworth said “We have proven our ability to embrace change, and the prospect of new ownership will be no different. Working together as a team, we will ensure continued success by staying focused on our customers. Furthermore, our core mission remains: driving the green transition with both new technologies and helping existing plants optimise their operations.” Ashworth added “FLSmidth made its name as a full flowsheet provider of cement plants. It is a history that we value and will continue to build on. But today’s cement market is a vastly different world with vastly different challenges than what has gone before. It therefore requires a different operating paradigm that moves away from a projects-based approach to focus on specific products and services. The pure play strategy thus frees us to adapt to the specific market challenges facing our industry and prioritise the supply of core offerings. The prospect of operating under new ownership only reinforces our current transition.”
FLSmidth to sell cement equipment business
30 January 2024Denmark: FLSmidth says that its plans to sell its cement business. The business provides FLSmidth’s processing equipment and services for cement plants around the globe. FLSmidth will now explore its possible divestment options in order to ‘maximise’ the business’ ‘full potential,’ while also serving to strengthen the supplier’s remaining mining business’ market-leading position in its sector.
Chair Tom Knutzen said “I am truly proud of what we have achieved with our cement business for more than 140 years. I firmly believe the business is well positioned for future success and that it has a significant role to play in the decarbonisation of cement. However, when reviewing the long-term options for FLSmidth as a business, for our customers and for our shareholders, we have concluded that a separation of ownership could be beneficial for both the mining and cement businesses. Unlocking the full potential of the cement business requires substantial investments and dedicated management attention, which we believe will be more easily achieved under a different ownership than FLSmidth’s.”
Chief executive officer Mikko Keto said “Our cement business has shown robust performance and good strategic progress over past years. This gives me great comfort in the cement business’ ability to continue its positive journey, also – and maybe even more so – under another ownership than FLSmidth’s. We have a clear ambition of further strengthening our market-leading position in mining, and we see tremendous long-term opportunities for the business backed by strong industry fundamentals and a positive long-term market outlook. Consequently, today’s decision of exploring divestment options for our cement business constitutes a key step in unlocking the full long-term potential of both the mining and cement businesses.”
FLSmidth's cement business reports sales of US$871m in 2023
30 January 2024Denmark: FLSmidth's cement business recorded preliminary, unaudited sales of US$871m in 2023, down by 59% year-on-year from US$2.14bn in 2022. The business contributed 25% of the group’s consolidated sales of US$3.5bn. FLSmidth had a total order intake for the year of US$3.11bn, toward which the cement business contributed US$711m (23%). The supplier said that its results were in line with guidance. It now expects its cement business to generate US$580 – 653m (19 – 23%) of total group sales of US$2.9 – 3.12bn in 2024.
FLSmidth said “We expect the short-term outlook for the cement industry to remain impacted by macroeconomic uncertainty. The guidance for 2024 reflects the ongoing execution of the GREEN’26 strategy, continued business simplification and product portfolio pruning, including the expected closing of sale of the MAAG gears and drives business during the first quarter of 2024.”
FLSmidth Cement sells MAAG gears and drives business to Solix
24 January 2024Denmark/Sweden: FLSmidth Cement has sold its MAAG gears and drives business to the Sweden-based investment company Solix Group for an undisclosed sum. The transaction is expected to close during the first quarter of 2024 and includes all related assets, including intellectual property, technology, employees and customer contracts. FLSmidth said that the divestment was is in line with its Green'26 strategy, which in combination with a greater strategic focus on the service business includes focusing the product portfolio on the core technologies required for a potential green transition in the cement industry.
The MAAG product range includes a wide range of industrial gear solutions for all types of mills and kilns, gear solutions for bucket-wheel excavators and belt conveyors, as well as many other heavy-duty applications used in the cement, mining and other industries. The business has an average turnover of around Euro55 – 65m/yr.
Christopher Ashworth, the president of FLSmidth Cement, said “The divestment is fully aligned with our ongoing transformation efforts and supports our Green'26 strategy. I would like to extent my gratitude to the dedicated employees in the MAAG business for their unwavering commitment to supplying high-quality solutions and services. I wish all the MAAG employees and Solix the very best going forward."