A sustainable business model
Societies all over the world are growing and becoming more economically developed. With hundreds of millions of people working their way from poverty to middle class, urbanization and industrialisation are driving the need for infrastructure and improved living standards. Minerals and cement are essential components to fulfil this ever-greater need for civilised societies - and this demand is set to continue to grow.
However, a number of issues are challenging the ability for the minerals and cement industries in this regard. The minerals and cement industries are increasingly focused on sustainability and their responsibilities to the environment and society in general. Successfully managing these responsibilities is vital to gaining local support to operate, and FLSmidth has both the experience and the technologies to help customers address the challenge.
Focused full-service provider
Being a ‘full-service provider’ means supplying everything from single products and services to complete plants or production lines and full operation & maintenance solutions. This is best illustrated by FLSmidth’s productivity enhancing ‘Design-Build-Operate’-model, where we offer to design, build and operate customers’ plants.
In essence, the customer is responsible for obtaining permits, access to raw materials, power supply and sales, whereas FLSmidth builds, operates and guarantees an agreed level of production and performance. The process know-how from designing a vast number of plants is applied to ensure the most efficient plant operations, and the practical experiences from operating the plants are fed straight back into FLSmidth’s product innovation which helps to shorten the time-to-market.
Focus on six key commodities
FLSmidth is a leading full-service provider of sustainable technologies within six key commodities: cement, copper, gold, coal, iron ore and fertilisers. Adjacent industries are targeted as well, where existing technologies can be applied. Examples of adjacent industries are power, steel, aggregate, chemical and other minerals such as alumina, bauxite, molybdenum, nickel, platinum and zinc.
Strategic building block
Our strategy is built around three interlinking themes:
- Customer intimacy
- Product leadership
- Operational excellence
Our strategic themes will support us as we extend our scope, flowsheet and footprint within our key industries. Through our strategy, we believe we will be able to enjoy profitable growth and meet targets above the market average.
FLSmidth works to build close, long-term relationships with our customers. Through our relationships, we become experts at understanding our customers’ businesses – perhaps even understanding their businesses as well as they do. Through customer intimacy, we build solutions to match customer needs, which in turn creates value and loyalty.
Our ambitious research and development work is the platform from which we build products and solutions for our customers. It is through close customer relationships that we fuel and direct our product development work for that is how we come to understand their business requirements.
Our product strategy focuses on:
- Combining our core competencies into service offerings or technologies that will strengthen our close customer relationships.
- Offering full-service solutions to cover more of the product life-cycle. Because we aim to be the One Source, our product leadership will include complete solutions, services, operation and maintenance for the complete flow sheet.
Our primary technology value proposition is based on the total cost of ownership being less expensive than the competition’s and more sustainable, cleaner and eco-efficient.
Continuous improvement is our guiding light in the way we execute orders and build our business operations. As part of our excellence, we are in the process of migrating to a worldwide IS/IT platform called Helios. As innovators, through the platform, we will maintain central knowledge databases and global communities of practice for information sharing.
To ensure the quality of our execution, we will develop and maintain strategic supplier relationships to obtain consistent high-quality, reliable delivery and competitive pricing for all products while also protecting our intellectual property.
FLSmidth’s life-cycle approach helps customers to reduce emissions, lower operating costs and enhance productivity based on a unique combination of key products, process know-how and service solutions.
FLSmidth has an excellent track record of reliability, time-to-market and project follow-through. By uniting a heritage of engineering/project competencies with in-house key products and a full range of services, FLSmidth is ideally positioned to offer customers the best solutions to improve productivity – and productivity will be the critical success factor in the years to come.