Strategy and stability: good results and green initiatives
The last twelve months was, by all accounts, a period of considerable change. First, we welcomed a new President, then announced we would seek a new owner and proceeded to accelerate the transformation of FLSmidth Cement into an independent company. At the same time, normal business went on as usual: we continued to serve the needs of our customers, maintain our commitments, and invest in new technologies.
Given all this, we were especially proud to report strong Q2 results, reflecting the “stability and growth of our business,” said Christopher. “Despite challenges in the broader market, we raised our financial guidance for 2024, signalling our healthy position and optimism for the future. These results are a testament to the resilience and dedication of our team.Going forward, our focus remains steadfast on growing our service offerings, delivering innovative products, and helping the industry accelerate its transition to more sustainable practices through our Green’26 initiative.”
It was a particularly exciting quarter on the services front with a focus on digital. “In addition to our strong automation suite, combined with our IoT platform enabling more connectivity, our PlantLine™ Service agreements are a great example of how we leverage digital to bring value to our customers. We recently celebrated passing 300 PlantLine service agreements in place globally, evidence that many cement plants want support in filling key skills gaps and delivering reliable, optimised performance. Another highlight of last quarter was the release of major updates to our ECS/ControlCenter™ 9.1 and ECS/ProcessExpert® 9.1 automation solutions: twin launches that will further drive efficiency and enable cement plants to lower CO2 emissions.”
Of course, FLSmidth Cement remains a heavy equipment supplier across our core product groups. “Our technologies are proven leaders in their respective fields. We continue to receive significant interest in equipment like our OK™ vertical roller mill, Cross-Bar® cooler, HOTDISC® alternative fuel reactor, PFISTER® feeding and dosing units, and Ventomatic® storage and dispatch solutions. These all play a vital role in enhancing efficiency and sustainability. We’re committed to further developing and promoting them in collaboration with our partners in the industry,” Christopher affirmed.
Celebrating long-standing relationships (and making new ones)
Christopher has continued to rack up the air miles since our last Conversation around the (Clinker) Cooler, attending the recent Intercem conference in Turkey, where we have long had a strong local sales and service presence. “Turkey continues to be a vibrant and essential market for us, and we are excited about the prospects there, particularly supporting their green transition,” said Christopher, who met several customers at the event. These included the CEO of Limak Cement, a company with ambitious decarbonisation plans, who recently signed a contract for a HOTDISC reactor, and the team at Çimsa, a long-standing FLSmidth Cement customer, who recently expanded its operations in Houston, USA, and Spain and acquired Mannok Cement in Ireland, site of the first FUELFLEX® pyrolyzer installation.
Some members of the FLSmidth Cement team who attended Intercem Instanbul
“Manoj Taneja, Head of our Indian operations, Vignesh Rathnasabapathy, and I were also honoured to attend the 140th anniversary of JK Organisation, parent of JK Cement, a valued client and one of India’s premier cement companies,” Christopher continued. “It’s 50 years since we supplied the company’s first cement plant in Nimbahera, Rajasthan, and 40 years since we supplied their first white cement plant in Gotan, Rajasthan. Over the intervening years, we have continued to support them in becoming the significant player in the Indian cement market that they are today.”
It’s a relationship that remains strong today, with JK Cement finalising a new contract for the supply of 5 x 16 spout Ventomatic packing lines, including truck loading machines, to its Bihar/Prayagraj and Hamirpur grinding units as recently as September 2024. “We value these long-term relationships and the mutual growth they enable,” concluded Christopher.
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Christopher Ashworth, Cement President and Tove Moeller Nielsen, Cement CFO visiting JK Cement
Looking ahead, Christopher is enthusiastic about returning to India to attend the upcoming NCB International Conference and Exhibition in New Delhi (27-29 November). “It’s another excellent opportunity to connect with our customers. We have a robust presence planned there, including four papers on innovative topics like alternative fuels, calcined clay, digital cement plants, and how Pfister feeding and dosing equipment can contribute to reducing carbon emissions.”
FLSmidth Cement will also attend the ASEAN Federation of Cement Manufacturers (AFCM) Technical Symposium & Exhibition in Kuala Lumpur (4-7 November) and the AUCBM Arab International Cement & Building Materials Conference and Exhibition in Tunis (26-28 November), exhibiting and presenting on our green cement solutions at both events.
Continuing toward independence
The last few months have seen further progress to a fully independent FLSmidth Cement with new hires in strategic positions and near-complete transitioning to separate business support functions. “Separating our business from FLS Mining provides the freedom to focus exclusively on the needs of our cement customers, explained Christopher. “It means we can tailor our operations and strategy to serve the cement industry more effectively.”
For instance, FLSmidth Cement India recently opened a new warehouse in Bawal, near New Delhi, part of an overall move on the Subcontinent to consolidate our cement-related activities and facilities to improve efficiency and responsiveness. Our India initiatives – as well as the opening of a new site close to our offices in Allentown in the US – are some of several investments happening as part of a broader plan to optimise our supply chain, making it more efficient and better aligned with customer needs. This includes completing the move to a new cement-centric ERP system that will “make us leaner, more agile, and more responsive to our clients”, said Christopher, and investment in new talent, like our recent hire of Head of Legal, which “reinforces our commitment to building a robust and self-sufficient organisation.”
Ribbon cutting at official opening of the Bawal Manufacturing and Service Center
A final pureplay shout-out goes to the launch of a dedicated FLSmidth Cement company page on LinkedIn.“Previously, our social media platforms were part of the FLSmidth Group ecosystem, but now our employees can proudly and exclusively promote themselves as FLSmidth Cement. The page also creates a space for engaging with the broader cement community. Follow us there to stay updated on our progress and developments as we push the boundaries of what's possible in the industry.”
We are in an “exciting phase of our journey,” concluded Christopher. “The transition to a fully independent entity allows us to redefine our goals and set new standards in the cement industry. With our dedicated team, strategic investments, and a clear focus on sustainability through our Green’26 initiative, we are well-positioned to provide innovative solutions that exceed our customers' expectations.”