Management and Board

FLSmidth is managed by top professionals with years of experience in the engineering and financial worlds, as well as in the cement and minerals industries.

FLSmidth management and board

Group Structure

To secure the future growth of the business, FLSmidth moves from two business segments (Cement and Minerals) to four (Customer Services, Material Handling, Mineral Processing and Cement).

FLSmidth group structure

Over the past decade FLSmidth has developed from a diversified conglomerate into a specialised and focused business group supported by two equally strong business segments, Cement and Minerals. It is expected that future growth will primarily take place in Minerals. Over the coming years the Group will gradually develop its organizational structure towards six selected industries: coal, iron ore, fertilizer minerals, copper, gold and cement, which each have the potential of growing just as big as Cement over the next decade.

To implement the strategy and highlight future value creation FLSmidth is structured around four business segments: Customer Services, Material Handling, Mineral Processing and Cement.

The split into four business segments makes it possible to give each segment full management attention, thereby releasing the growth potential of each of the segments. Today, the four business segments are comparable in size, but with fundamental differences in terms of market dynamics and business execution.

The group structure lays the foundation for gradually continuing the development of the business and the organisation, and the ownership of all six focus industries is already firmly in place.

FLSmidth also controls Cembrit Holding A/S (Cembrit), which is Europe’s leading dedicated provider of fibre cement products.

Organizational structure

Organizational Structure FLSmidth

Customer Services Division

FLSmidth’s service activities consist of the Customer Services division and service related activities that are integrated in product companies in the other divisions. Customer Services is separated from the projects business to make the growth of Customer Services a clear priority within FLSmidth and to foster a service culture and mindset. Besides, a separate and dedicated Customer Services organisation improves the potential for synergies across FLSmidth.

Customer Services is a strategically important business that differs favourably from projects by being less cyclical and generating higher earnings. It involves all the services, parts supply and upgrades that are carried out before, while and after FLSmidth installs a plant and commissions it. The purpose is to improve the performance of customers’ plants in a safe and sustainable manner to the highest possible standard.

Customer Services employs 5,847 people worldwide (as at 31 December 2013).

Material Handling Division

FLSmidth is strongly placed in the Material Handling market and offers a complete range of products for transporting bulk materials from the mine to their final destination. Bulk materials such as coal, iron ore and fertilizers are produced, conveyed and transported in large quantities.

The Material Handling division offers a complete range of material handling technologies that allow our customers to convey raw and bulk materials. It provides raw ore crushing, transport, stacking, blending, storage and stockyard management, ship loading/unloading facilities for import and export of bulk materials, as well as automation and control systems.

Furthermore, environmental control systems and engineered drive solutions are part of the division’s portfolio. The division offers state-of-the-art Material Handling technology, all engineering trades required, manufacturing/fabrication, civil works, erection and commissioning as well as operational and maintenance services.

Material Handling employs 3,306 people worldwide (as at 31 December 2013).

Mineral Processing Division

FLSmidth’s Mineral Processing division encompasses all the technologies, products, processes and systems used to separate commercially viable minerals from their ores. The division’s solutions range from process optimisation services, the supply of single machines to the design and delivery of complete plants for concentrating and refining copper, gold, coal, iron ore, fertilizers and other minerals.

Mining is a global business where solutions are tailored to the type of ore to be processed, and not to the part of the world in which the technologies are delivered. In fact, many projects are designed by engineering houses located on different continents than the mine sites, and often for customers that are located on yet another, third continent. Accordingly, FLSmidth’s Mineral Processing division has deployed a global-local structure that facilitates global coordination and standardisation and leverages our global scale with a strong local presence in important mining locations to provide customised life cycle support for our mining customers’ operations.

Mineral Processing employs 2,840 people worldwide (as at 31 December 2013).

Cement Division

For 132 years, FLSmidth has been the leading supplier of complete cement plants, production lines, single machinery, spare parts, knowhow, services and maintenance to the global cement industry.

The major cement projects are handled by regional project centres that each cover their particular geographical region with main offices located in Denmark (Valby), USA (Bethlehem), India (Chennai) and China (Beijing). Global responsibility for technology, innovation and design of the Group’s key machinery is centralised in a global organisation to ensure that all projects worldwide maintain a consistent and high technological standard. The Indian organisation increasingly serves as a support centre for the project centres in Denmark and the USA.

Cement employs 2,251 people worldwide (as at 31 December 2013).