From conglomorate to core business
2000
The HOTDISC
In 2000, FLSmidth launched the HOTDISC that burns all forms of solid waste from sludge or grains to huge used car tyres or large pieces of timber such as old telephone poles. The HOTDISC is a safe and economical way of turning useless and environmentally challenging solid waste into useful energy at cement plants, substituting a large part of their fossil fuel consumption. Today most new cement plants are pre-equipped for this technology.
The HOTDISC
2001
During the 1990's, it had become increasingly difficult to continue to develop all the company’s business areas. It became clear that the conglomerate as a strategic concept was no longer viable. It was therefore decided to streamline and focus the Group and eventually dispose of its non-strategic interests.
Potagua A/S, FLSmidth's principal owner, who represented the founding families, announced at the end of 2001 that it did not consider itself the ideal majority shareholder of the Group in the long term. It proposed that a new Board of Directors be elected comprising mainly professional business people to steer the transition from conglomerate to core business.
2001 saw the merger of the two cement engineering companies, F.L.Smidth & Co A/S and Fuller Company, which until then had operated in parallel as two separate entities. The name of the new consolidated business became F.L.Smidth A/S.
Bhagwati Designs, an Indian engineering consultancy; MVT, a supplier of bulk material handling equipment; and Pfaff aqs, a German manufacturer of automatic sampling and sample handling equipment were acquired and joined the Group's cement engineering business.
2003
Conveyor Kit, a South African materials handling equipment producer, is acquired by FFE Minerals.
2004
Several structural changes took place. In January, the parent company of the Group, FLS Industries A/S, and its subsidiary, F.L.Smidth A/S were organisationally integrated.
In the first half of that year, FLS Aerospace was finally sold as part of the overall strategy to dispose of the Group’s non-strategic activities.
In line with the strategy to focus the Group’s activities on the development and production of equipment, production plants, systems and services for the global cement and minerals industries, Aalborg Portland Holding and Unicon were sold. This marked the end of an era of direct involvement in production of cement and concrete.
2005
The Multi Movable Cross Bar Cooler
At the beginning of the year, FLS Industries A/S changed its name to FLSmidth & Co. A/S, signalling the final return to the Group's roots as an engineering company serving the cement and minerals industries.
A view inside a MMCC
FLSmidth further enhanced its SF Cross-Bar (SFC) clinker cooler technology with the Multi-Movable Cross-Bar (MMC) cooler. The SFC, which was introduced in 1997, had revolutionised the way in which clinker coolers were installed, operated, and maintained. The new MMC reduced maintenance and installation costs for both new and retrofit applications. The new cooler also increased kiln run factor, provided low long-term maintenance costs, and optimal heat recuperation.
2006
In January, FLSmidth was awarded a contract by Holcim to supply the world's biggest cement production line with a capacity of 12,000 tpd. The line was to be built at Ste. Genevieve, Missouri, USA.
3D-drawing of the future Ste. Genevieve plant
The finished Ste. Genevieve, 2009
FLSmidth's future ownership structure was finalised in 2006, when FLSmidth & Co. A/S and Potagua FLS A/S signed an agreement on a tax-exempt share exchange. The two companies subsequently merged with FLSmidth & Co. A/S as the continuing company.
2006 also brought in American Excel Foundry and Machine, Inc. and the remaining 49% of Excel Crusher Technology as well as German Koch Transporttechnik into the Group as part of its Minerals business.
2007
2007 marked the celebration of the FLSmidth Group's 125-year anniversary. Employee shares were granted to the Group's some 7,000 staff, and a unique customer seminar tour focused on the future of the cement industry.
2007 also saw the name change of FFE Minerals to FLSmidth Minerals and the acquisition of RAHCO International, an American manufacture of bulk material handling systems. Most important, however, was the acquisition of a world-leading provider of separation equipment for the metal and minerals industries - the process division of Canadian GL&V consisting of Dorr-Oliver Eimco and Krebs Engineers. This acquisition enabled FLSmidth Minerals to offer customers the entire flow sheet of a typical minerals plant from raw material extraction to the final end product.
Finally, the Group reached the final stages of its ongoing focusing on Cement and Minerals with the sale of Densit, one of the few remaining non-core activities, to Illinois Tool Works Inc.
2008
In 2008, FLSmidth achieved its highest revenue and EBIT ever, but the year also showed the first signs of a global financial crisis.
During the year FLSmidth acquired three U.S.-based companies to support its Minerals business – Pneumapress Inc., Dawson Metallurgical Laboratories and CEntry. The acquisitions strengthened the company in becoming ‘One Source - One Partner’ in the minerals industries, offering leading full flow-sheet solutions and systems.
2008 was also the year when the Board of Directors adopted a Corporate Social Responsibility policy focusing on three major aspects of the Group’s activities: Business ethics, environmental policy and human resource policy.
2009
FLSmidth successfully commissioned Holcim's Ste. Genevieve plant in Missouri, USA, the world's largest cement clinker production line with a capacity of 12,000 tpd.
In 2009, FLSmidth acquired two U.S. based companies – Conveyor Engineering and Summit Valley Equipment and Engineering – and EEL India Limited.
To further strengthen FLSmidth’s international presence a global branding strategy was adopted in 2009 – "One Company - One Name - One Source" – with the aim of streamlining all external communication and marketing on a global level and supporting FLSmidth’s strategic position as a supplier of the whole value chain to the cement and minerals processing industries.
In line with this strategy and to provide customers with a simplified global overview of FLSmidth and create a more transparent Group structure, all subsidiaries and product companies changed their names to FLSmidth as at 1 January 2010.
2010
FLSmidth received three major contracts for the operation and maintenance of cement plants. This is a new line of business which entails complete responsibility for staffing, equipment maintenance and spare parts and technical support for an agreed time span and within agreed production targets.
FLSmidth acquired Roymec, a supplier of mining infrastructure including bulk material handling solutions. Roymec is an accredited contributor under South Africa's Broad-Based Black Economic Empowerment (BBBEE) Act.
Towards the end of the year, an offer was submitted to acquire ESSA Australia, which is a world leading specialist in the design, manufacture, support and service of sampling and sample preparation equipment for the international minerals and mining industry. The deal was finalised in 2011.
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