Services enabling and maintaining resource efficiency

Transcription

1 Services enabling and maintaining resource efficiency Capital Markets Day 2012 Kalle Härkki, President, Services Business Area November 30 - Hamburg, Germany

2 Life cycle offerings delivered globally through four business areas Market Operations Supply Business Infrastructure Strategy Technology Management Finance & Control Legal Affairs Human Capital Communications and Corporate Responsibility Non-ferrous Solutions for the processing of copper, nickel, zinc, lead, gold, silver, platinum group metals, industrial minerals as well as valuable minor metals Ferrous Solutions for the production of concentrates, industrial minerals, pellets, sinter, pig iron, direct reduced iron, ferroalloys, and titanium feedstock Energy, Light Metals & Environmental Solutions for oil shale, oil sands and biomass processing, light metals and sulfuric acid production, off-gas handling, and industrial water treatment Services plant audits, expertspare from spare parts, modernizations and maintenance agreements to plant level O&M agreements, training and project management partners peers competitors Competitive landscape is fragmented FLS, Metso, local competitors, internal maintenance departments Engineering: AMEC, Ausenco, Bechtel, Chalieco, Enfi, Fluor, Hatch, MCC, NERIN, NFC, SNC-Lavalin, SRK, Worley Parsons 2

3 Sustainable solutions for the entire plant life cycle BENEFITS Improved safety & health Decreased operating costs Improved environmental efficiency Improved capital efficiency Improved process efficiency 3

4 STRATEGY IN ACTION 4

5 Services has met its growth targets Annual Service Sales Q1-Q EUR million Service sales Service sales Q1-Q3 Growth has been achieved through: Strengthening local presence Addressing installed base Productizing service offering Organizational development Scalable operational model Acquisitions and successful integration In 2007, sales target set for year 2010 was EUR million In 2010, sales target set for year 2015 was EUR 500 million In 2012, sales target set for year 2017 is EUR 1 billion 5

6 Services development focusing on profitable growth In we... In we will focus on... Strengthened local presence Acquired 5 companies Developed Services offering Focused on serving our installed base Developed our competencies Started to offer O&M services Service offerings productized Human capital development Further strengthening local presence Increasing delivery capabilities Service acquisitions Further penetration of the installed base Resourcing and capability strengthening Sales target set: EUR million by 2010 Outotec Services business development Sales target set: EUR 500 million by 2015 Sales target set: EUR 1 billion by

7 Large installed base offers great growth opportunities for Services Outotec deliveries: 140 smelters 650 sulfuric acid plants 1,100 mills 10,000 flotation units 1,800 thickeners 3,500 filters 20 pelletizing and sintering plants for chromites (ferroalloys) 9 ferroalloy smelters 400 sintering plants (ferrous) 93 pelletizing plants (ferrous) 290 fluidized bed roasting plants (ELE) 50 alumina calcination plants (ELE) 7

8 OUTOTEC SERVICE IN ACTION 8

9 Creating customer value through Outotec services Improved Process Efficiency Improved Safety & Health Modernization Solutions Expert Services Improved Capital Efficiency O&M Solutions Spare Parts Solutions Decreased Operating Costs Improved Environmental Efficiency 9

10 Selected services cases Modernization solutions Smelters Flotation Expert services Furnace emergency shutdown Filtration Operations & Maintenance solutions Ilmenite smelter Concentrator plant 10

11 Outotec Flash Furnace modernization Case La Caridad Total refurbishment of the Flash Smelting Furnace Outotec has the unique capability and expertise to deliver the complete process Modernization Solutions Outotec Scope: Engineering & design Flash Smelting Furnace technology supply Shutdown planning Shutdown execution and demolition Rebuilding and construction of the modernized furnace Commissioning & start-up 11

12 FloatForce Mixing Mechanism upgrade Case Inmet Çayeli Çayeli Bakır İşletmeleri A.Ş. (CBI) Modernization Solutions Fluctuation and reduction in ore grades made it difficult to reach recovery targets Outotec supplied FloatForce mixing units for the zinc rougher circuit The features and benefits of FloatForce created real monetary savings We were overwhelmed by the increased pumping performance with FloatForce during the testing period. For example, the power consumption on the electrical motors dropped by 50% and we are recovering 3% more zinc in the roughers section. Modernization Solutions O&M Solutions Expert Services Nihan Sahin Processing Plant Technical Superintendent, Inmet Mining at CBI 12

13 Case Furnace emergency shutdown Expert Services Outotec typical scope removal of refractory plus detailed planning, scheduling and execution for removal of solidified material Patented Outotec lancing process significantly outperforming competition by safety and speed Mechanized removal using Outotec s proprietary remote controlled demolition equipment 13

14 Outotec Maintenance Agreement- Case Two Rivers Platinum Outotec scope: Expert Services Maintaining an Outotec Larox PF 60 filter in a platinum mine in South Africa Seven years and 200,000 cycles later, the filter still meets the plant s monthly production targets for platinum concentrate, steadily turning out cakes with the desired moisture Modular set-up of the Maintenance Service Agreement enables tailoring of the agreement to fully meet specific customer needs Team work is crucial for resolving problems quickly and creating mutual trust amongst us. We communicate very well and keep all correspondence transparent. We work together to achieve the required targets. Outotec is highly rated and one of the best. Thinus Breedt Plant manager at Two Rivers Platinum 14

15 Operations & Maintenance for ilmenite smelter Case Cristal Global Strategic maintenance planning including optimization of spare parts and inventory Process Support Remote Services - back up for emergencies via remote connection emergency deployments O&M Solutions 15

16 O&M services for concentrator plant 16

17 Growing to EUR 1bn by 2017 Growth enablers Capturing the potential of all business areas installed base Leveraging local presence and capabilities Productization and bundling service offering Full utilization of supply and delivery capabilities Expanding operation and maintenance services Acquisitions Services sales target EUR 1 billion by the end of Growth is planned to be achieved through organic growth, acquisitions, strengthening local presence and new life cycle service offerings. 17

18 Our mission: Sustainable use of Earth's natural resources. 18