During the last two decades, FLSmidth has acquired a number of minerals-related companies to tap into the opportunities being created by the expanding economic developments throughout the world.
Addition of these companies has helped FLSmidth to diversify the focus of FLSmidth between two core competencies: Cement and Minerals. Each new company acquired brings a new set of skills, experience, and exciting new product lines that complement FLSmidth’s minerals abilities and offerings while strengtheningthe One Source position to offer full flowsheet capabilities to a variety of minerals industries.
Now that FLSmidth has expanded its reach and acquired thenecessary resources to provide total solution packages, it became necessary to evaluate how the organisation has evolved and look for ways to improve, unify and streamline efforts.
To help better understand the directions to take, recent studies and research was conducted with customers and employees to evaluate FLSmidth’s minerals activities and help to understand where the strengths and weaknesses are while looking for ways for continual improvement. It was found imperative that FLSmidth offers not only competitive solutions, but also provides quality, timeliness, and improved customer communication.
To improve competitiveness and customer focus, FLSmidth has implemented a new organisational structure for its minerals activities.
Integrating expertise in Salt Lake City
Salt Lake City has long been a location of world-renowned expertise for leading liquid-solid separation technologies to mining installations throughout the world. EIMCO has its origins in the Salt Lake valley from before the turn of the 19th century and has since been joined by other FLSmidth companies Dorr-Oliver, CEntry, Dawson Metallurgical Laboratories and Summit Valley Equipment & Engineering. Together, these business units now lay a strong foundation for FLSmidth’s minerals processing Technology Center to be managed out of Salt Lake City. A new FLSmidth office, lab and warehouse campus is being constructed to house all these companies and is scheduled for completion in July 2010. The integration of minerals processing at this location will improve the coordination and consolidation within product management and process know-how.
Chennai, India will continue to be the centre for engineering and support for both FLSmidth’s Cement and Minerals operations while taking on more product engineering as a result of the consolidation of technology resources from other parts of the globe.
Acquiring a number of ‘product companies’ in different parts of the world meant expertise for certain technologies was spread out geographically and became challenging when proposing complementary products for client solutions. To truly become One Source, the reporting structure of many of the product companies has been realigned to unify strategies and to uncover ways to leverage the strengths of each company and its employees.
Material Handling realigned
To unite FLSmidth’s material handling technologies, a new business unit has been created providing a full range of world-class material handling solutions to the cement and mining industries. Having one face to the market, the global product centre for material handling will be managed out of Wadgassen Germany, with separate operational locations in Wadgassen (formerly Koch-MVT), for port facilities, stockpiling, and coke technology; in Spokane USA (formerly RAHCO) for mobile material handling solutions, and in Boise USA (formerly Conveyor Engineering) for all conveyor technology. Combining each of these material handling companies allows for better coordination of engineering, project management, operational purchasing procedures and standards across the material handling organisation which in turn will lead to a unified approach to developing better customer relations.
Those product companies that were relatively self-contained or businesses that do not fit directly in the identified focus areas for FLSmidth’s minerals division will be operated in a more independent way compared to the focus areas of the company.
A new business unit called C&I (Chemical & Industrial) has been established to apply the technologies of FLSmidth to the chemical and industrial markets. This is outside the identified focus areas for the main body of the minerals business, but C&I represents a successful business segment that essentially encompasses the activities of our Walluf, Germany and Milan, Italy facilities.
Key Industry Managers
The more we know about our customers and the markets or industries they operate in, the more we will be able to plan our selling strategies and allocate resources to the right territories and industries. In that regard, a critical part of FLSmidth’s minerals strategy was to name Key Industry Managers (KIM’s) for some of our more important markets and industries. These managers will play a major role in the gathering of industry and market intelligence to focus efforts on key industry players. They will coordinate efforts in the distribution of information to/from the technology centres, align the sales resources in the submission of unified and timely bid proposals, and guide the organisation towards the future growth opportunities within the industries served.
CONTACT: Andrew Cuthbert