Outsourcing solutions

Maximize your return on investment by outsourcing operations and maintenance (O&M) of your cement plant

Complete outsourcing solutions

Operation and Maintenance concept

O&M means that you contract us to operate and maintain your plant

O&M concept

Operation & Maintenance (O&M) concept

The basic principle of Operation & Maintenance (O&M) is that you contract us to operate and maintain your plant. In doing so, we guarantee your output levels for an agreed price per tonne. Our fee is performance-based. All you have to do is account for certain basic provisions (fuel, raw materials, power) and let us take responsibility for the plant performance.

In this way, you can convert your variable costs to fixed costs per tonne. You will only be charged according to our performance. Our performance guarantees will enable you to make educated decisions and plan ahead, particularly with regard to related aspects of the business. 

When the O&M contract expires, your plant will be returned in optimal working condition, including a competent, engaged and organised workforce, all the required computer hardware and software, as well as tools and equipment used for operating the plant.  

Sharing responsibility and risk

In order to work effectively with outsourcing, it is important to clearly define expectations and responsibilities upfront. At FLSmidth, we have no ambitions to become the plant owners. As such, we take no financial stake or holdings in the plants we operate. Our contribution and scope of responsibility is contained to the efficient running and professional upkeep of a facility. 

Risk sharing between FLSmidth and the customer is based on a rational division of responsibility. FLSmidth's responsibility is contained to risks within its control, i.e. the efficient running and professional upkeep of a facility. The plant owner accounts for fundamental supply issues for example, power, water, fuel and raw materials. In addition, all capital investments in machinery and property are the responsibility of the plant owner. However, we help define specifications and make recommendations where and when necessary. By limiting our role to operational and maintenance support, we also ensure there is no conflict of interest between our customers and ourselves.