Friday 1st Jul, 2022

thyssenkrupp sells mining business to FLSmidth

Industrial machinery manufacturer Metso has made new appointments to its executive team, including a new President for its Minerals Services business area.

thyssenkrupp will sell its mining business to Danish company FLSmidth for around $522.6 million (EUR 325 million) as part of its realignment strategy.

thyssenkrupp allocated the mining business to the multi tracks segment in October 2020 to find a new owner.

The business unit employs around 3400 people and generated sales of around $1.28 billion (EUR 800 million) in the 2019/20 financial year.

The company aims to transform itself into a high-performing group of companies with independent businesses, a lean holding company and a focus on systematic performance improvement across all businesses.

thyssenkrupp AG CEO Martina Merz said the successful sale of the Mining business shows it is pressing ahead at full speed with the transformation of thyssenkrupp.

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“But we have not yet reached our goal. The principle ‘Performance first’ continues to apply. We need to return to positive cash flow as quickly as possible. The sale of Mining Technologies makes an important contribution to this,” Merz said.

“At the same time I am pleased that we have found a very good new owner in FLSmidth. FLSmidth presented a convincing business strategy and a clear vision for the Mining business. It will give our employees attractive prospects. That was extremely important to us when negotiating the sale.”

FLSmidth CEO Thomas Schulz aid thyssenkrupp’s Mining business is an ideal addition for FLSmidth.

“We are particularly impressed by the capabilities, expertise and reputation of the thyssenkrupp employees, especially in projects and products,” Schulz said.

“The large global installed base offers great potential for the service and aftermarket business. We have similar business models, share a strong focus on sustainability and digitalisation and our corporate cultures are a good match.

“As a result, I am very much looking forward to combining our strengths; I am convinced that together we will play a leading role in shaping a zero-emission future for the mining industry and in creating sustainable growth for our customers, employees and shareholders.”

The transaction is subject to competition authority approval. The closing of the transaction is expected within the next 12 months.

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