Displaying items by tag: Denmark

Denmark: Equipment manufcaturer FLSmidth says that the cement market has remained ‘unchanged’ so far in 2018. It described the market for new cement capacity as ‘subdued’ but that opportunities for small and medium projects were available. In addition, the second quarter of 2018 showed a number of single equipment and upgrade project orders which the company has marked as a strategy area.

Order intake for its cement division fell by 42% year-on-year to Euro215m from Euro368m. However, revenue rose by 2% to Euro272m. Overall, the group’s order intake fell slightly to Euro1.35bn but revenue rose by 18% to Euro1.2bn.

"We saw the highest order intake in the Minerals division for several years, which shows that miners are starting to put action behind their investment plans. Most activity is related to single equipment and brownfield expansion. We benefit from our business model of full life-cycle offerings which enables us to support customers in their pursuit of productivity enhancements", said group chief executive officer (CEO) Thomas Schulz.

Central America: Denmark’s FLSmidth has been awarded two contracts for cement plants worth over Euro250m. One deal is for a new plant and the other is for an expansion to an existing site. The expected start-up for each project is by mid-2021 and once operational, the cement plants will have a capacity of 2000t/day and 3500t/day respectively.

Both contracts include design and engineering, equipment supply, automation systems, training as well as advisory services for installation and commissioning. Each project is also dependent on FLSmidth receiving an agreed down payment before work can commence.

China/Denmark: Denmark’s FLSmdith and China National Building Material (CNBM) have signed a framework agreement about future collaboration. Song Zhiping, chairman of CNBM Group and Thomas Schulz, Group chief executive officer (CEO) of FLSmidth signed the deal at FLSmidth’s headquarters in Denmark in July 2018.

"It was a pleasure to welcome the guests and to participate in such collaborative discussions about future opportunities to work together. Through this framework agreement, we see numerous benefits over the coming years for us and our customers, such as expediting our quotation response time, which will improve our delivery performance and increase productivity," said Schulz.

FLSmidth is an engineering company that provides machinery and connected services to the cement and mineral industries. CNBM Group is both the world’s largest cement producer and a leading cement plant construction company. The companies have worked together on projects previously, such as the Relizane cement plant order for ETHRB Group in Algeria.

Denmark: FLSmidth plans to change its internal business structure to focus on two industries: cement and mining. The reorganisation will see it change its focus from four divisions to two industries and from a country setup into a regional structure. Sales and service will be decentralised in seven regions, while ownership for the full life cycle offering will be anchored in the two industries. This is intended to create a productivity-driven organisation with a strong, unified digital approach and strengthen the engineering firm’s local presence.

"With the end markets recovering, our customers accelerate to invest in productivity enhancing and digital solutions. To support our customers' growth, the two industries, Cement and Mining, will deliver integrated productivity offerings through the regions. Our decentralised organisation will give us a strong point of entry to offer our customers key products, shorter delivery times and a strong service setup," said group chief executive officer Thomas Schulz.

Its two industry grouping, Cement and Mining, will develop and drive the life-cycle offering and the product portfolio. The two industries will be supported by seven regions: North America; South America; Europe, Russia & North Africa; Sub-Saharan Africa & Middle East; Asia; Subcontinental India; and Australia. The regions will drive customer relations, sales and service for both industries. A central digital organisation will drive an enhanced, unified approach to digitalisation. The realigned organisation will become effective from 1 July 2018.

Denmark: FLSmidth has appointed Mikael Lindholm as Chief Digital Officer (CDO) with effect from 1 May 2018. Lindholm has worked on digitalisation in the global Internet of Things since the mid-2000s, most recently in a position as Vice President, Internet of Things Asia with Telenor. His previous experience includes strategic and operational experience from both the service industry and traditional manufacturing.

Denmark: FLSmidth has completed its acquisition of Sandvik Mining Systems following the transfer of assets in South Africa. The process was mostly completed in November 2017 with the exception of assets in South Africa, which was delayed due to merger control clearance. The acquisition includes continuous surface mining and minerals handling technologies and competences that strengthen the company's core minerals business.

"With the completion of the South African assets we have added references, local expertise and improved ability to deliver complete solutions to our Sub-Saharan customers. We welcome our new colleagues and customers to FLSmidth," said Manfred Schaffer, Group Executive Vice President, Minerals Division of FLSmidth.

As part of the transfer, FLSmidth will either assume existing orders or provide project management services on behalf of Sandvik on selected on-going projects and supply parts and services for the installed equipment.

Algeria: ETHRB Group has ordered an integrated cement plant from FLSmidth for a site at Relizane. The order has a cost of over Euro100m and it includes engineering, equipment supply, construction supervision, commissioning, and training. The deal comes from a partnership between FLSmidth and Beijing Triumph International Engineering Company, a subsidiary of China National Building Material Group Corporation, which will be responsible for the construction of the cement plant. The plant will mainly supply cement to the North African market. Once completed, the cement plant will have a capacity of 12,000t/day. Commissioning is scheduled for late 2020.

“This order underlines FLSmidth's strength as the leading supplier of the most productivity-enhancing solutions and energy-efficient equipment and technology available in the market today. It marks the culmination of a close collaboration between the customer and FLSmidth and demonstrates our ability to work with contractors from anywhere in the world based on our experience and competencies from the cement industry, our global presence, and the know-how of our 12,000 employees," said Per Mejnert Kristensen, Group Executive Vice President, Cement Division.

The scope of supply includes: two EV 200x300 Hammer Impact Crushers; one additive crusher; two circular storages; one longitudinal storage; two ATOX raw mills; two CF-silos (Ø18m x 52m); two preheaters (two string ILC, five stages); two kilns (5.25m x 62m); two Cross-Bar coolers (16m x 50m); a clinker silo (Ø 60m x 46 m); three OK61-4 cement mills; four cement silos (ø22x52 m); and six packing lines.

HeidelbergCement made Italy’s Cementir Holding its Valentine last week in the form of a deal for the Italian company to buy up the remaining shares in Lehigh White Cement in the US. Cementir takes control of the former joint venture by upping its share to 63.25% for US$107m and one of the other partners, Cemex, increases its share to 36.75% for US$34m. Despite making the announcement on Valentine’s Day HeidelbergCement then described the sale in fairly unromantic language, “As a niche product with small volumes, the standalone production of white cement does not fit to the strategic focus on efficiency of HeidelbergCement.” Maybe they could just send flowers to each other next year instead!

More seriously, this latest deal by Cementir is yet another intriguing evolution of the Italian multinational building materials producer. The company says it is the largest white cement producer in the world through subsidiaries like Aalborg Portland in Demark, Sinai White Cement in Egypt and Lehigh White Cement in the US. Its plant at El-Arish in Egypt is the largest white cement unit in the world. In 2016 it reported a white cement production capacity of 3.3Mt/yr from six plants in Denmark, Egypt, China, Malaysia and the US. Its volume sales of white cement were 2.2Mt at this time or a capacity utilisation rate of 67%. In the US it operates two white cement plants located in Waco, Texas and York, Pennsylvania with a total capacity of 0.26Mt/yr, as well as a distribution network throughout the country, which is also used to distribute white cement imported from its partners across North America. In 2017 Cementir produced 10.3Mt of Ordinary Portland (grey) Cement and white cement, a rise of 24.6% year-on-year from 8.25Mt in 2016. The boost was delivered by the acquisition of Compagnie des Ciments Belges. Like-for-like sales volumes increased by around 1.7% year-on-year.

Cementir left the Italian market in 2017 when it sold Cementir Italia to HeidelbergCement for Euro315m. As this column commented as the time (GCW320) the deal seemed cheap given that HeidelbergCement paid Euro315m for five integrated cement plants plus extras. However, Cementir appeared to actually make a profit on Sacci which it picked up cheaply in 2016.

Now HeidelbergCement has returned the favour by selling Cementir the controlling stake in Lehigh White Cement. The German cement producer may have grumpily rubbished the sale in its press release but the language makes one wonder whether this was a quiet part of the Cementir Italia deal in 2017. The white cement industry is miniscule compared to the OPC one but HeidelbergCement has just handed even more control of it to Cementir. From Cementir’s perspective this probably seems very efficient.

Denmark: Cement plant manufacturer FLSmidth has announced its financial results for 2017, which show, overall, its strongest order intake for four years. Total orders grew by 6% year-on-year in 2017, bolstered primarily by the company’s Minerals division.

Cement sector orders for the year were Euro611.0m, 1% lower than the Euro615.0m seen in 2016. Revenue from cement sector orders came to Euro547.9m, 5% lower than the US$576.0m orders received in 2016.

“2017 probably marked the trough of the business cycle and, based on our good positioning and strong life-cycle solutions, we expect our business to start growing again in the coming years. Our order intake increased and the momentum in the mining sector continues in 2018, while cement market conditions are expected to remain unchanged,” said CEO Thomas Schulz.

For 2018, FLSmidth anticipates an overall revenue from all activites of Euro2.42-2.68bn (2017 was Euro2.42bn).

Denmark: Virve Elisabeth Meesak has resigned from FLSmidth as its Group Executive Vice President for Human Resources. She had been in post since 2013. She will leave the company by the end of January 2018.