FLS in China PSt March 2006

Transcription

1 FLS in China

2 Presentation in Shanghai on April 6, 2006 by Palle Steenbøl Chief Representative

3 Agenda The Chinese cement industry FLS in China Historical high lights Workshop in Qingdao Beijing office Future prospects

4 Cement consumption per capita

5 Cement capacity in China Historical output, Mio. tpy output % annual growth Year 0 Output Growth

6 Where is the cement consumed? Rest of the world 44% China 44% USA 6% India 6% Total global consumption: ~ 2.1 bio. tpy

7 Chinese cement industry Cement consumption in China Total cement consumption mio. tpy annual increase % 9,7 19,0 12,4 9,3 New and upgraded lines in operation No

8 Chinese cement industry Output and no. of new lines, Type of kiln Production (mio. tpy) No. of lines increase increase Modern PC kilns Wet kilns Shaft kilns ,500 11, Other types of kilns Total ,100 11,

9 Chinese cement industry Output and no. of new lines, Type of kiln Production (mio. tpy) No. of lines increase increase Modern PC kilns Wet kilns Shaft kilns Other types of kilns Total

10 FLS in China Historical highlights 1906 First contract for two rotary kilns in Tangshan 1912 Office established in Beijing 1928 The office was moved to Shanghai 1948 The office in Shanghai was closed 1978 Open door policy re-established and so was the activities of FLS 1984 New Representative Office established in Beijing 2000 Establishment of company (WFOE) in China with own workshop in Qingdao, Shandong FLS supplies: ~ 78 raw mills ~ 52 Duoflex burers and the first two 10,000 lines to the Chinese cement industry

11 FLS Qingdao In 2001 a workshop was leased in a 900 m² building owned by Maersk Container Industry in Qingdao. In 2002 the workshop was moved to the present location, and with a building area of m². In 2004 the workshop area under roof was expanded with an additional m², giving a total of m². In 2006 a complete new workshop will be constructed with a total workshop area of m².

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13 First Duoflex ready for shipment

14 Duoflex Burner

15 35 Duoflex Burners numbers sold via FLS-QD Numbers Sold Export China Year

16 SF Cross Bar Cooler

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20 FLS Qingdao Employees end of General Manager 2 Assistant/Secretary 3 Managers (New workshop, Production and Finance) 1 Technical Service/QA Supervisor 15 Staff TOTAL: 22 Employees (White collar) 4 Foremen 9 Team leaders 79 Workers 6 Contract workers Production: TOTAL: 98 Employees (Blue collar) ALL: 120 Employees.

21 FLS Qingdao Number of Employees est. Year

22 FLS Qingdao Manufacturing turn-over in Mio. RMB est.

23 FLS Qingdao (Q4 2006)

24 FLSmidth Beijing Office

25 FLSmidth A/S Beijing Office Total number of employees with base in Beijing is 25, consisting of: 1 General Manager Chief Representative 1 Secretary 3 Sales Engineers 2 Project Management (Manager + Assistant) 6 Sourcing (Manager (DN) + 5 Assistants) 1 Finance Manager 2 Spare Parts Sales 5 Site Supervisors 3 Office workers

26 FLSmidth A/S Beijing Office Main activities Sales to the local market - Equipment and Spare Parts Project management Supervision & Trouble Shooting Sourcing

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29 Atox grinding table ordered at CITIC

30 Vertical raw mills sold in China number of mills No. of mills sold FLS Loesche Pfeiffer UBE Polysius Year Total no. of Atox mills : 78 (+ 8 in 2006)

31 Vertical raw mills sold in China market shares 100 Market share, % FLS Loesche Pfeiffer UBE Polysius Year

32 FLS sales in China (number sold) No. sold Year Vertical mills Kilns SF coolers Duoflex

33 FLSmidth A/S Sales turn over in China FLS sales in China hit the bottom in the years just after the Asian economical crises. The Sales started to pick up again in year 2000 Both in 2003 and 2004 the total sales exceeded DKK 700 million. The authorities decision in to cool down investments in the cement industry affected the sales in 2005.

34 FLSmidth A/S Sales to China mdkk Year

35 Sales in China for separate group companies mdkk Pfister MAAG Ventomatic FFEM FLSmidth

36 Sourcing in China Sourcing from Low Cost Countries (LCC) is a must in order to stay competitive. However it is essential for FLS to ensure high quality products as well as trustworthy delivery times. Many potential suppliers in China - but thorough checking is needed before they become Approved sub-supplier.

37 FLS in China Future Prospects The expansion and renewal of the Chinese cement plants will continue at relatively high rate FLS aim is to maintain our position as preferred foreign supplier of various specialized equipment Continued increased sourcing for our global projects Increased focus on After Sales Services

38 Yingde Conch 4 x tpd Production lines