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A New Chapter Ahead for FLSmidth Cement
As announced on 29 January 2024, FLSmidth is exploring new ownership for our Cement business. We welcome this development. Cement has been the heart and soul of FLSmidth for much of its history, however our market environment has evolved. Years ago, we shared some synergies and economies of scale by integrating aspects of our organization with our mining business. However, our industries, and in turn, the appropriate operating models which best serve them, have diverged. Consequently, combining our two organizations under one ownership is now forcing more operational friction than benefit.
The decision to seek new ownership has been taken only after careful consideration and analysis, and with the best interests of all parties involved. The objective is to enable FLSmidth Cement to maximize its full potential.
Considering the transition, Christopher Ashworth, President of FLSmidth Cement, states: “We have proven our ability to embrace change, and the prospect of new ownership will be no different. Working together as a team, we will ensure continued success by staying focused on our customers. Furthermore, our core mission remains; driving the green transition with both new technologies and helping existing plants optimize their operations.”
Over the past year, we have simplified the Cement business, improved our profitability and sharpened our focus on our core competencies. Consequently, we are well positioned to both capture future opportunities and fully unlock the potential that our service business represents. Going forward, FLSmidth Cement will continue to execute on our 'GREEN'26' strategy with no changes to leadership or operations and, most importantly, without any impact to the service and support of our customers.
The company announcement from FLSmidth can be found here https://www.flsmidth.com/en-gb/company/news/company-announcements/2024/flsmidth-to-explore-divestment-options-for-its-cement-business