2024, FLSmidth, a full-process technology and service provider for the global mining and cement industry, announced that it was considering splitting the mining and cement business with the goal of maximizing the full potential of the cement business. And further strengthen the mining business's market leading position as a full-process technology and service provider for the global mining industry.
FLSmidth was founded in 1882, located in Copenhagen, the capital of Denmark. It has been more than 140 years and has nearly 11000 employees in more than 60 countries and regions. In 2023, FLSmidth achieved revenues of DKK 24.1 billion, including DKK 17.1 billion from the mining business and DKK 6 billion from the cement business. FLSmidth's cement business has been performing strongly and strategically well
over the past few years. However, under the influence of unfavorable factors such as macro-economy, geopolitics, changing regulatory environment and market conditions, Smith's cement business orders decreased by 26.1% and its cement business revenue decreased by 3.4% in 2023. In 2023, Smith Company simplified and streamlined its cement business and implemented the "GREEN" 26 cement strategy. FLSmidth expects that the cement industry will continue to be affected by macroeconomic uncertainties in the short term. The company's performance guidance shows that the cement revenue in 2024 is expected to be around 4-4.5 billion Danish kroner, and the profit margin before interest and tax is about 5.5-5.6%. Revenue and adjusted EBIT margin guidance reflects continued execution of the "Green" 26 cement strategy, continued business streamlining and continued product mix optimization.
As announced, FLSmidth introduced a specialization strategy to separate its mining and cement businesses. Long-term financial targets have been announced for both businesses. As of January 1, 2024, the new corporate structure is in place and the remaining spin-off activities are expected to be completed in the first half of 2024. The market dynamics and industry fundamentals of the
mining and cement business are very different. There are limited synergies, customer base overlap and product offering overlap between the two businesses. Therefore, by separating the two businesses, both parties will benefit from greater operational flexibility, greater accountability, and greater financial transparency. This allows them to focus on their unique opportunities and challenges to maximize their potential.
