An agreement concluding the take-over of Teutrine by FLSmidth was signed on 03.09.2012; Teutrine thus gains access to much greater resources than ever before, as well as to new technologies and new markets. “The acquisition of Teutrine is a significant addition to our service concept in relation to repair and refurbishment services as well as replacement and upgrade services for all the major equipment on a cement plant – creating even closer relations between FLSmidth and our customers”, stated Group CEO Jørgen Huno Rasmussen. ZKG spoke to Directors Gabriele Teutrine and Franz-Josef Hemmer, and also to Ulrik Kolding Hartvig of FLSmidth, on the reasons and synergy effects of this acquisition, and on the results for customers.
ZKG: Ms. Teutrine, what induced Teutrine to accept this offer?
Gabriele Teutrine: We showcased our range of services to FLSmidth last year, and this led to a series of contracts and, as time went on, to the discussion of various potentials for co-operation. It soon became clear to Franz‑Josef Hemmer and myself that closer links with FLSmidth would be a means of developing the company further with the speed and intensity we were looking for – something we could never have achieved so quickly on our own. Finally, Ulrik Kolding Hartvig of FLSmidth approached us with a rational proposal and against the background of co-operation that had never been anything other than positive, we were ultimately able to reach agreement.
ZKG: Mr. Hartvig, how does Teutrine fit into FLSmidth’s portfolio?
Ulrik Kolding Hartvig: Very well indeed! FLSmidth has up to now had great strengths in plant planning and construction, and around two years ago we decided, on that basis, to expand customer service in the field of modernisation and repair into a full business unit. We also took over Philips Kiln Services last year, for similar reasons. This, for us, signifies the expansion of FLSmidth’s range to full-liner status for the entire cement and minerals industry.
ZKG: What can customers expect?
Franz-Josef Hemmer: For customers, it’s nothing but good news! We can now offer even more; in the past it has often become clear during projects that our customers trust us and would like us to do more. Now we also have the resources necessary for the more extensive projects that we would previously have had to turn down because they exceeded our engineering capacities. For customers, the range of products will increase, although we will always remain true to our core capability of maintenance. We will, of course, also continue to be there for our customers, in the usual way, and we’ll definitely maintain our tradition of close customer-orientation. We’ll still be based at our headquarters in Stromberg, but we’ll be expanding there, too.
ZKG: And how will integration into FLSmidth look?
Ulrik Kolding Hartvig: There will be a certain integration in the back-office sector, otherwise Teutrine will continue to operate independently, with its capabilities for the markets and services which the company supports now. We also aim to further expand service activities around the globe and, for example, to set up branches, possibly with support from Stromberg, in a number of new countries. Only the future will tell!
ZKG: FLSmidth also has a strong presence in the minerals sector, do you envisage a new field of activity for Teutrine there?
Gabriele Teutrine: Teutrine originated in the cement industry, and will continue to have a focus there. Many of our services are also interesting for other sectors, too, and can be applied to other industries. So we could increase our range of services, and thus enable our staff to gain experience in a broader range of industries.
Ulrik Kolding Hartvig: It may well be that customers from FLSmidth’s minerals sector could be served by Teutrine in future, but that is not the priority aim at the moment. Teutrine has projects in other industrial sectors even now, providing services to them during the seasonally weaker months in the cement industry. So we certainly do have the potential and the know-how.
Franz-Josef Hemmer: We’ve long had customers operating outside the cement industry, but using comparable plant technology. We’re involved right now in projects for the sugar industry, for the recycling industry, with a three-station rotary kiln, and also for the foodstuffs industry. Currently, for example, we’re working on a project which involves overhauling a complete kiln, from the inlet seal and the girth gear, up to and including the tyres and lining, in just one week. These customers can and will also continue to build on the basis of our services.
ZKG: And your conclusion on the take-over, Ms. Teutrine?
Gabriele Teutrine: I’m confident that we have positioned the company well for the future with this new structure. Our link to FLSmidth introduces totally new dynamics into our corporate evolution, and it will be an excellent platform for the further development of our services and our employees. Precision engineering and thin sheet metal are not “our thing” – our strengths and core capabilities are in work on big rotationally symmetrical machines like mills and rotary kilns, and nothing is going to change there.
ZKG: Most sincere thanks for this interview, and all success in the future.