FLSmidth is looking at available divestment options for its Cement business to unlock the unit’s full potential.
The company introduced pure play strategies to separate its Mining and Cement businesses early last year. As of Jan. 1, the new company structure is in place and the remaining separation activities are expected to be completed during the first half of 2024.
“Over the past year, we have simplified and rightsized the Cement business to further strengthen its market-leading position, improve profitability and make it fit-for-purpose with a strategic focus on the core products and services required in the cement industry,” said FLSmidth. “We continue to believe that the global economic development and the green transition offer attractive long-term growth opportunities for our Cement business, and that especially the Service business holds significant untapped potential.”
“Unlocking the full potential of the Cement business requires substantial investments and dedicated management attention, which we believe will be more easily achieved under a different ownership than FLSmidth,” added Chair Tom Knutzen.
FLSmidth said there is no guarantee that any transaction will transpire but expects a potential one would take place by late-2024 at the earliest. In the meantime, FLSmidth Cement will continue to execute on its “GREEN’26” strategy with no changes to leadership or operations.