In another major development in the large geared drives market in mining, on 22 January 2024, FLSmidth through FLSmidth Cement, sold its MAAG gears and drives business to the Swedish investment company, Solix Group AB. The transaction is expected to close during the first quarter of 2024 and includes all related assets, including intellectual property, technology, employees and customer contracts.
The divestment of the MAAG business FLSmidth said is in line with FLSmidth Cement’s GREEN’26 strategy, which in combination with a greater strategic focus on the service business includes focusing the product portfolio on the core technologies required for the green transition in the cement industry.
While the cement industry application area was highlighted, the MAAG product range includes a wide range of industrial gear solutions for all types of mills and kilns, gear solutions for bucket-wheel excavators and belt conveyors as well as many other heavy-duty applications used in mining and other industries in addition to cement. FLSmidth said that the business has an average annual turnover of around DKK400-500 million.
Since introducing the technology of planetary gear units to the cement industry with great success in 1966, MAAG has sold over 6,000 gear units and 1,000 girth gears. MAAG also manufactures components such as bevel sets and girth gears up to 11.2 m diameter, and various spare parts. Its production sites are located in Italy, Poland and India and feature the latest in machinery, including hobbing, grinding, shaping and milling cutter machines for spur, helical and bevel gears, large assembly space and a test bench. State-of-the-art measuring devices complete its production systems. In its high-tech heat treatment department, MAAG nitrides and quenches the toothing of its geared components for heavy-duty purposes.
“The divestment is fully aligned with our ongoing transformation efforts and supports our GREEN’26 strategy. I would like to extent my gratitude to the dedicated employees in the MAAG business for their unwavering commitment to supplying high-quality solutions and services. I wish all the MAAG employees and Solix the very best going forward,” said Christopher Ashworth, President of FLSmidth Cement.
FLSmidth said it expects to realise a small net gain from the divestment of the MAAG business which will be recognised in the first quarter of 2024.
