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Metso outlines new strategy and operating model
pumpindustry ANALYST
ISSN 1359-6128 August 2014
www.pumpindustryanalyst.com
Metso outlines new strategy and operating model
M
etso Corp is adopting a new strategy and operating model with effect from 1 October 2014, focused on mining, oil & gas and aggregates. The goal is to strengthen Metso’s position as a technology and services provider for endto-end minerals processing and to become a leader in flow control within the oil & gas and mining industries. Metso will study strategic alternatives, including potential divestment, for its current Process Automation Systems business, which primarily serves the pulp, paper and power industries. The Finnish company is also updating its operating model to include three business areas: Services, Flow Control and Minerals. Flow Control will develop and grow the pumps business for mining customers as well as valves mainly for the oil & gas sector.
“Our new strategy, together with our new operating model, marks the beginning of a new era for Metso,” said Metso president and CEO Matti Kähkönen. “In essence, we will continue to move ahead with our transformation into a focused company, with businesses that offer growth potential with higher margins. This will translate into higher profitability and better returns – and ultimately greater value for our shareholders.”
Contents Company Profile ITT
5
Nikkiso
6
Company Watch Alfa Laval
7
CECO Environmental
7
DXP Enterprises
8
Metso
8
SPX
9
Xylem
9
Diary
15
Dividends
13
Exchange Rates
14
Financial Calendar
14
In Brief
12
For further information, visit www.metso.com
COMMENT Having rejected Weir’s advances earlier this year, Metso is now revising its own strategy and operating model with renewed focus on mining, oil & gas and aggregates. ■
Market Prospects New Product Developments
2–4 14
News
Franklin Electric acquires 70% stake in India’s Pluga Pumps
Metso outlines new strategy and operating model Franklin Electric acquires 70% stake in India’s Pluga Pumps
1
F
New divisional structure for FLSmidth
12
OneSubsea to set up well intervention alliance with Helix and Schlumberger
12
Wangen Pumpen establishes US distribution company
13
Award for Kirloskar Brothers’ all-women Coimbatore plant
13
Tencarva Machinery invests in Nashville
13
ITT opens pump testing and packaging facility in Seneca Falls
16
Dover acquires chemical injection pump maker
16
Hayward Tyler: grant funding of up to £1mn confirmed
16
Orders & Contracts
10
People & Appointments
11
Stock Watch
15
ranklin Electric Co Inc has bought a 70% interest in Pluga Pumps and Motors Private Ltd, based in Vadodara, India. Pluga designs, manufactures and distributes groundwater motor and pumping equipment, including submersible pumps. The company has a newly built facility in Vadodara and 11 branch offices throughout India. Pluga had revenues of approximately US$13 million in the fiscal year ended March 2014. Franklin Electric purchased the 70% share with cash and is obligated to buy the remaining 30% in 2017. India is a key developing region market for Franklin Electric’s Water and Fueling Systems businesses.
“Having recently moved into a new factory, Pluga provides in country manufacturing capability,” said Franklin Electric CEO Gregg Sengstack. “Franklin Electric will be able to supply them the resources to accelerate new product development, improve efficiencies and expand marketing, sales and distribution beyond their existing network of branch offices across the country,” added Sengstack. Franklin Electric sees additional opportunities with the Pluga management team to develop solar powered pumping systems specifically designed to address the needs of the Indian market. For further information, visit www.franklin-electric.com and www.pluga.com
1
ISSN 1359-6128/14 © 2014 Elsevier Ltd. All rights reserved. This journal and the individual contributions contained in it are protected under copyright by Elsevier Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.
ISSN 1359-6128 August 2014
www.pumpindustryanalyst.com
Metso outlines new strategy and operating model
M
etso Corp is adopting a new strategy and operating model with effect from 1 October 2014, focused on mining, oil & gas and aggregates. The goal is to strengthen Metso’s position as a technology and services provider for endto-end minerals processing and to become a leader in flow control within the oil & gas and mining industries. Metso will study strategic alternatives, including potential divestment, for its current Process Automation Systems business, which primarily serves the pulp, paper and power industries. The Finnish company is also updating its operating model to include three business areas: Services, Flow Control and Minerals. Flow Control will develop and grow the pumps business for mining customers as well as valves mainly for the oil & gas sector.
“Our new strategy, together with our new operating model, marks the beginning of a new era for Metso,” said Metso president and CEO Matti Kähkönen. “In essence, we will continue to move ahead with our transformation into a focused company, with businesses that offer growth potential with higher margins. This will translate into higher profitability and better returns – and ultimately greater value for our shareholders.”
Contents Company Profile ITT
5
Nikkiso
6
Company Watch Alfa Laval
7
CECO Environmental
7
DXP Enterprises
8
Metso
8
SPX
9
Xylem
9
Diary
15
Dividends
13
Exchange Rates
14
Financial Calendar
14
In Brief
12
For further information, visit www.metso.com
COMMENT Having rejected Weir’s advances earlier this year, Metso is now revising its own strategy and operating model with renewed focus on mining, oil & gas and aggregates. ■
Market Prospects New Product Developments
2–4 14
News
Franklin Electric acquires 70% stake in India’s Pluga Pumps
Metso outlines new strategy and operating model Franklin Electric acquires 70% stake in India’s Pluga Pumps
1
F
New divisional structure for FLSmidth
12
OneSubsea to set up well intervention alliance with Helix and Schlumberger
12
Wangen Pumpen establishes US distribution company
13
Award for Kirloskar Brothers’ all-women Coimbatore plant
13
Tencarva Machinery invests in Nashville
13
ITT opens pump testing and packaging facility in Seneca Falls
16
Dover acquires chemical injection pump maker
16
Hayward Tyler: grant funding of up to £1mn confirmed
16
Orders & Contracts
10
People & Appointments
11
Stock Watch
15
ranklin Electric Co Inc has bought a 70% interest in Pluga Pumps and Motors Private Ltd, based in Vadodara, India. Pluga designs, manufactures and distributes groundwater motor and pumping equipment, including submersible pumps. The company has a newly built facility in Vadodara and 11 branch offices throughout India. Pluga had revenues of approximately US$13 million in the fiscal year ended March 2014. Franklin Electric purchased the 70% share with cash and is obligated to buy the remaining 30% in 2017. India is a key developing region market for Franklin Electric’s Water and Fueling Systems businesses.
“Having recently moved into a new factory, Pluga provides in country manufacturing capability,” said Franklin Electric CEO Gregg Sengstack. “Franklin Electric will be able to supply them the resources to accelerate new product development, improve efficiencies and expand marketing, sales and distribution beyond their existing network of branch offices across the country,” added Sengstack. Franklin Electric sees additional opportunities with the Pluga management team to develop solar powered pumping systems specifically designed to address the needs of the Indian market. For further information, visit www.franklin-electric.com and www.pluga.com
1
ISSN 1359-6128/14 © 2014 Elsevier Ltd. All rights reserved. This journal and the individual contributions contained in it are protected under copyright by Elsevier Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.