Eastward expansion KHD Humboldt Wedag

EASTWARD

EXPANSION

KHD Humboldt Wedag GmbH, the global key player for cement plant technology, equipment and services, has just secured an exciting strategic partnership in the important Chinese market. Julia Snow finds out more from managing director Ralf Slomski.

AS a technology leader with over 150 years of industry experience KHD is renowned for its process engineering and project management competencies as well as its energy-efficient products for the cement grinding and pyroprocessing sections of cement plants.

Today the holding company KHD Humboldt Wedag International AG has over 750 employees worldwide, and area offices for Asia Pacific, North and South America, India, China and CIS/Russia. Ralf Slomski, responsible for KHD’s EMEA operations in Europe, Middle East and Africa, is based in the Cologne headquarters. Global development based on innovations

The company was founded in 1856 as a manufacturer of mining machinery. A key date was the first delivered cement kiln in 1906, but KHD’s best known breakthrough was the invention of the first preheater kiln

in 1953, a revolution in terms of energy efficiency which is still industry standard. The same year saw the start of the international expansion with market entry in Australia, followed by in India in 1964, the USA in 1974 and South Africa in 1977. Major developments followed in 1993 after German reunification, when KHD merged with Dessaubased ZAB, a major player in Russian.

The company has been listed on the Frankfurt stock exchange since April 2010.

Quality manufacturing worldwide

KHD offers core equipment for more than half of an entire cement plant, from preheaters, calciners, coolers and kilns to grinding systems and roller presses. The company stopped centralised production in Germany back in 2009, explains Mr Slomski: “We improved our competitiveness by outsourcing all manufacturing. We invested heavily in our quality management staff and now certify our own selected manufacturers, which are as close as possible to the projects. We still provide manufacturing, engineering and supervision services, and together with independent surveyors we ensure that our German quality standards are met or exceeded at every production site.”

KHD also offers process design, equipment manufacturing, spare parts and the full range of plant services. Although new construction accounts for the majority of sales, there are also upgrades and service contracts for existing facilities.

East meets west

In February 2011 KHD announced a bold strategic move: The Chinese group AVIC acquired 20 per cent of its shares, leading to a strategic partnership that opens up the Chinese market, which accounts for 50 per cent of global cement capacity. “We will provide our process technology exclusively to AVIC for cement projects, while they are our exclusive supplier for civil construction works. We combine the best of east and west, by bringing proven technology from Germany together with the competitive price of construction from China,” says Mr Slomski. KHD has already established a procurement centre in China, because “Chinese partners can source more cost effectively from within their own country than any ‘foreign’ company could, so this gives us very competitive rates.”

Closer to customers

KHD holds numerous patents and is known as a front runner for creativity and innovation. The R&D department in Cologne focuses on

energy efficiency, alternative fuels and materials. “We never take our eye off the ball, both in detailed improvements and in big jumps. The fact that we have developed a new roller press technology which saves up to 50 per cent of energy in the grinding process shows that there is still room for improvements.

“Being the technology leader is good, but there’s more to the winning ‘overall package’. We see the new strategic concept of establishing local customer service centres as a key to our future success.” KHD has over 500 plants and 5000 units of machinery installed worldwide, and is dedicated to improving customer services by shortening response times and distances.

“We’re working for all major global cement producers, and we’ve had big orders in the last 12 months. My office for example covers dozens of countries, also through offices in

Saudi Arabia and South Africa. In Turkey, where we have our biggest worldwide market share with 70 per cent in units, 40 per cent of production and over 60 plants, there was no direct local representation. Due to demand for ongoing support, we are now establishing a Turkey office. All new branch offices will cover all processes from tendering and sales to execution and after sales, supported with tools, strategies and manpower from our Global Headquarters in Cologne.” New business

In addition to service improvements, the mining industry offers growth potential, says Mr Slomski: “Eighty per cent of our contracts are in the stable cement industry, with global growth rates of +3 per cent and slightly higher in emerging markets. We therefore see more significant growth potential in mining, where we’re gaining market share with our newly established HPGR roller press technology. This technology is key to the mining industry, it’s a revolution in efficiency and easy to maintain and repair.” The company is also looking forward to completing successful projects with AVIC in the years ahead, says Mr Slomski: “The market tendency shows a clear demand for EPC turnkey projects, handled by one competent partner. We are in a perfect starting position for this, based on the strength of our new partnership that combines our technology with competitive civil construction.” n