FLSmidth completes acquisition of tk Mining
Please find up-to-date information and answers to the most common customer questions below. Feel free to reach out to your regular point of contact for further details.
If you are an FLSmidth customer, vendor, partner or one of our new customers following the acquisition of thyssenkrupp's Mining business, we hope you find the information you are looking for below on what this news means for you in terms of new benefits and business practicalities.
- What is the current situation regarding FLSmidth’s acquisition of thyssenkrupp Mining’s business?
FLSmidth has officially acquired the Mining business of thyssenkrupp AG, following the approval from regulators globally. With immediate effect, thyssenkrupp Mining becomes part of FLSmidth. As this is an acquisition (as opposed to a merger) by FLSmidth, the entities of thyssenkrupp mining will operate under the FLSmidth name and brand.
The proposed acquisition was announced in 2021. Since then, up until final approvals were received, we have been planning for the integration of thyssenkrupp's Mining business into FLSmidth.
This planning phase has now ended and we have entered into an integration phase where thyssenkrupp’s Mining equipment, solutions, digital solutions and service business will now be integrated into the FLSmidth portfolio. During this time, there will be as few changes as possible for customers in supply chain, service, digital support and other areas.
Following over 12 months of integration planning, involving a team of 250 people, we are ready for a smooth start and to maintain, as far as possible, business as usual.
- Why has FLSmidth acquired thyssenkrupp’s Mining business?
With the acquisition, FLSmidth strengthens its position as a leading supplier for our customers in the global mining industry. The combined full-line coverage of FLSmidth and thyssenkrupp’s Mining business includes a strengthening of our pit-to-plant range of technology, equipment and service expertise, as well as best-in-class digital solutions and market leading HPGR, Eccentric Roll Crusher and Overland Conveyor technology, to name just a few examples.
The acquisition will also increase the installed base and customer base, increasing our competencies to serve our customers across multiple technologies. This will allow for more robust customer approach in service and aftermarket, as well as for the creation of strong strategic opportunities and boosting resource and investment in R&D, digital and innovation. This will result in a shorter time to market for new innovations and technologies.
The acquisition supports our central ambition to bring sustainable technology to the mining market that will increase customer productivity and profitability while reducing environmental footprint. We identified the thyssenkrupp Mining offering as an ideal fit with FLSmidth’s MissionZero sustainability ambition and with our digitalisation agenda and now can combine our competencies, offerings and expertise.
Overall, we see the mining industry as heading into a growth phase, and this acquisition will place FLSmidth in an even better position to meet customer needs.
- Will the thyssenkrupp Mining name be used at all?
- As this is an acquisition by FLSmidth, the company will operate under the FLSmidth brand. In the short term, you may still encounter the legacy thyssenkrupp Mining name while the integration process is being conducted.
- Now that thyssenkrupp’s Mining business has become part of FLSmidth, when will the integration begin and how soon will a combined portfolio of products be available to customers?
Integration planning began upon the signing of the agreement in 2021 and was built upon the customer-focused opportunities and value-led synergies already identified by FLSmidth during the negotiation process.
Now that all approvals have been received and the deal has closed, integration will begin at once. From the customer perspective, it will very much be “business as usual” during the integration period. Customers, however, will quickly notice a stronger combined customer approach and service setup, as well as the benefits of extended mining flowsheet coverage and a more localised approach due to a larger geographical footprint.
- What are the assets in question? Is there an overlap?
Thyssenkrupp’s Mining equipment offering consisted of open-pit mining equipment and systems, mineral processing solutions and material handling solutions. It was primarily involved in crushing, conveying, grinding and processing, areas that are broadly complementary to our offering.
We do have some overlap of technologies, but we see a clear complementary offering – especially in the areas of sustainability and digitalisation. For example, thyssenkrupp Mining had a strong in-pit crushing set up which will now complement our existing offering. And in grinding, it had a strong position with HPGRs, while we are a leading provider in other grinding solutions, such as SAG mills. We are now in a position to bring the very best solutions, equipment and expertise from across the flowsheet to our customers under the FLSmidth name.
- Is the acquisition of thyssenkrupp’s Mining business part of a larger FLSmidth strategy, and can we expect further strengthening through acquisition?
As a business we are always seeking new ways to support our customers with increased productivity and more sustainable solutions. The acquisition of thyssenkrupp’s Mining business is obviously large in scale and will be significant in impact. As a result, it will be the key focus of the business for the coming period. We will, however, continue to seek opportunities in the market that allow us to advance our digital, sustainability and service offering to our customers globally.
- How will this acquisition impact my business? What immediate differences will I see?
Ensuring business as usual and a continued customer focus are top priorities, but there will be some noticeable changes in the coming months. We will endeavour to keep any disruption to an absolute minimum, keep you completely informed and up-to-date, and ensure you have a direct point of contact for any queries.
There will be some consolidation, for instance, when it comes to service, equipment and FLSmidth points of contact. Again, we will keep customer needs as our priority and remain transparent. We will continue to support the installed base.
This acquisition is positive news for our customers and the mining industry in general and we are moving quickly to bring the advantages of a larger, strong organisation to the market.
We are looking forward to bringing a stronger portfolio from a true mining specialist, backed by more - and in many cases closer - service centres with localised knowledge and faster response times. This, combined with full, pit-to-plant flowsheet and extra R&D resources for innovation, will ensure many future advantages for your business.
- What benefits will customers see?
This acquisition has created one of the world’s largest and strongest suppliers to the mining industry and a global, leading technology provider. Our complementary customer base and improved geographical coverage offers an even stronger value proposition to all our customers. We see a significant aftermarket opportunity in growing and strengthening the services business to better serve you.
You can now rely on a global leading technology provider from pit to plant with a full-line supply of solutions. We have improved our capabilities. This means, for instance, that we can drive innovation and digitalisation even faster and deliver solutions that enable the mining industry to increase productivity, while minimising its environmental footprint and securing license to operate. The move also supports our MissionZero ambition to enable you to move towards zero water waste, zero emissions and zero energy waste in your operations by 2030.
- What new areas of the mining flowsheet will be covered by FLSmidth?
- The thyssenkrupp Mining offering is an ideal fit with FLSmidth’s sustainability and digitalisation agenda. Thyssenkrupp‘s Mining business was primarily involved in crushing, conveying, grinding and processing, which is highly complementary to FLSmidth’s offering. Key technology acquired to reduce the environmental footprint and digitalise mines from pit to plant include in-pit-crushing-and-conveying solutions, high-pressure grinding rolls (HPGR), large mine conveyors and OLCs (Over Land Conveyor), to name just a few examples.
- A strong relationship with my account manager is important for me. Will my point of contact change?
We understand the importance of maintaining an established point of contact and so your contact point will remain the same for the current period. If you have an FLSmidth contact and a contact in what was formerly thyssenkrupp Mining, you should continue dialogue with both contacts, or with whichever one is most relevant for your query. If there are changes in this area, you will be notified immediately.
FLSmidth values and prioritises close, local and knowledge-driven customer relationships. And while, inevitably, there will be some changes as we work to bring you the best from this acquisition, we will ensure minimal disruption to your daily interactions, with a strong business-as-usual approach.
- Will service, service policies or aftermarket change? Will any service centres be closing?
- At this point in time, we do not foresee any significant changes in this area. One of the main benefits we see from the acquisition of thyssenkrupp’s Mining business is an improved and more robust customer service and aftermarket offering. The combined FLSmidth and thyssenkrupp installed base will provide a robust growth area for maintenance and optimisation, wear and spare parts and integrated digital and automation solutions.
- Will I be left with legacy equipment or solutions that I will not be able to get serviced?
No. The full range of FLSmidth and the newly acquired equipment and solutions will be fully supported by an even larger team of experts. No one understands the equipment across the lifecycle like the OEM. We will fully use the knowhow of our new thyssenkrupp colleagues and integrate them into our local, 24/7 customer service across all regions.
We have positioned ourselves close to the customer with a focus on strong relationships, from initial equipment purchase through the ultimate decommissioning or replacement. Now with an expanded service team and larger global footprint, customers can expect even faster and better service.
- Should I expect any interruption to the supply chain?
- FLSmidth is proud of its robust, agile and resilient supply chain, which is run on a decentralised framework. This allows us to support customers on a local level through strong relationships and advanced preparation. As a relationship-focused company, we can work closely with suppliers, ensuring our products are prioritised, so they get to the customer as quickly, safely and efficiently as possible. This is the reason we do not expect any interruptions during the integration period.
- Will my digital solutions be compatible going forward?
Integration of digital solutions will begin at once and there will be minimal interruption for customers. The addition of digital solutions in areas such as service, control systems and in the digitalisation of products to FLSmidth’s already robust digital portfolio will deliver an expanded and exciting range of benefits to customers. Improved capabilities will be seen across automation, productivity optimisation, remote operations and predictive maintenance.
Furthermore, with a wider range of flowsheet coverage, customers will be able to benefit from integrated optimisation from pit-to-plant. Our mission is to become the number one sustainable productivity provider in the mining industry, and this will strengthen our ability to meet this goal. Optimisation, and related productivity increases, are the biggest opportunities that we see for our customers – utilising the right data and combining it with human expertise can lead to significant gains on reliability, productivity and sustainability.
There will be benefits for customers in the combination of data from the entire mining flowsheet – this will unlock massive potential in optimisation, process efficiency and resource use (such as water and energy), which will help cut costs and reduce the environmental footprint of operations.
- Will any warranties and agreements still be in effect?
- Yes, the transaction will not affect any warranties or agreements currently in place. All warranties and agreements with thyssenkrupp’s Mining business which are legally valid will be fully honoured by FLSmidth.
- Will the quote or competing quotes I have received from FLSmidth/thyssenkrupp still be honoured?
All currently tendered quotes from FLSmidth will be fully honoured by FLSmidth.
All currently tendered quotes from the former thyssenkrupp Mining entity will be assessed on a case-by-case basis.
- Are the contracts/purchase orders we have in place still valid? If so, for how long?
Yes, the transaction will not affect any legally valid contracts/purchase orders currently in place. All contracts/purchase orders with thyssenkrupp’s Mining business which were legally valid at closing of the transaction will be fully honoured by FLSmidth.
- Who do I contact if I have a problem or concern?
Your business point of contact will remain unchanged. For specific questions related to this potential acquisition, please contact your local FLSmidth representative. If you have both a representative from the former thyssenkrupp Mining organisation and an FLSmidth representative, please contact both until further notice.
Investor relations questions should be addressed to our Head of Investor Relations.
Jannick Lindegaard Denholt
+45 21 69 66 57