FLS is reshaping its service model in Australia and South-East Asia, bringing decision-making closer to mining operations.
In an industry where unexpected downtime can cost millions, mining equipment suppliers are under constant pressure to deliver faster, more specialised service.
Recognising that customer expectations are rising as market conditions evolve, FLSmidth (FLS) has overhauled its service business line structure – a move designed to bring decision-making closer to the customer and position the company for long-term growth.
FLS transitioned from four broad global regions to five more localised sales and service areas, including the creation of Australia and Southeast Asia (ASEA) and Central Asia and India (CA&I) divisions.
The change means a dedicated head of sales and service for ASEA, with Kenny Don stepping into the role.
Don, who has been with FLS for more than 15 years, will relocate from Tucson, Arizona, to Australia. He joins a regional leadership team alongside head of pumps, cyclones and valves (PCV) Noel Raymond, and head of product business line John Coughlan.
“It’s about providing specialised value rather than a generalist approach,” Don told Australian Mining. “Each team works hand-in-hand so that no matter who customers call, we’ll get the right resources to them quickly – because we are all FLS.”
Mining markets across Australia and Southeast Asia are high-value and high-pressure. With a significant installed equipment base in the region, FLS saw the need for a structure that gives local customers a greater level of attention.
“In sales and service, we wanted to give Australia, Papua New Guinea and Southeast Asia more specialised focus,” Raymond said. “The previous structure was effective, but we knew we could be closer and more responsive if we redefined the boundaries.”
The company’s new customer-first operating model is central to this approach. Local account managers have been empowered to make real-time decisions, such as expediting parts or repairs, without waiting for senior approval.
“In the past, some of those calls could take weeks,” Coughlan said. “Now if we need to act to get a site back up and running, we can make that decision immediately.”
While the realignment is structural, the changes go deeper than reporting lines. FLS has reorganised its service operations around three global service groups – spare parts and modernisation, consumables, and a combined repair and field services group.
Each group now owns its profit and loss and is accountable for delivering results. For mining customers, this means technical expertise is concentrated into dedicated teams with clear ownership.
Repairs, for example, are now managed as a global network of 16 facilities under the service business line, 14 under PCV, and one managed regionally, all with centralised quality standards but local customisation.
Field services have also been integrated more closely with sales and service areas, helping to ensure customer engagement goes beyond parts supply.
“Our field experts can solve operational problems that boost throughput and recovery,” Raymond said. “That’s far more valuable than just saving a few dollars on parts pricing.”
The changes are already taking form, with FLS opening a new service centre in the mining hub of Mackay, Queensland. The facility is designed to handle a broader range of equipment than the company’s previous, smaller locations in the region, including major rebuilds of gyratory crushers.
“Mackay will be key in supporting our customers on the north-east coast, including the Mount Isa region,” Don said. “The large warehousing capability means we can keep critical spares closer to where they’re needed, reducing lead times and downtime.”
FLS has hinted that Mackay could be just the start, with other potential service expansions on the map.
A notable part of the restructure is the creation of a lifecycle offering (LCO) function. This global team integrates solutions across the FLS mining product and service portfolio, including digital, to help customers improve productivity, reliability and sustainability across the full life of mine.
“Small improvements in recovery, even one per cent, can translate into millions of dollars of extra gold or copper each year,” Coughlan said. “The lifecycle teams will analyse plant performance and provide clear actions to increase recovery and throughput.”
While the restructure is a proactive step, it comes at a time when suppliers across the mining sector are under pressure to do more with less. Labour shortages, supply chain constraints, and increasing environmental, social and governance (ESG) scrutiny are reshaping how service providers operate.
FLS acknowledges these challenges but sees them as opportunities.
“We know systems and programs are rarely perfect,” Don said. “But the key is to have people who can come together, make the right call for the customer, and get the job done either way.”
The company’s closer integration of teams is aimed at removing the siloed culture that can slow service delivery.
“We’re driving the mindset that our people and products should be on the customer’s doorstep quicker than ever before,” Raymond said.
For FLS, the transformation is as much about future-proofing as it is about today’s performance. By aligning technical expertise, decentralising decision-making, and leveraging global best practice, the company believes it can deliver sustained value in areas such as digitalisation, supply chain resilience and decarbonisation.
“We want to be a long-term partner for our customers,” Don said. “That means not just delivering high-quality solutions consistently but finding ways to improve their annual income by millions of dollars over the life of mine.”
As mining operations become more complex, and as customers demand faster, more tailored service – FLS’s new structure will be put to the test.
But if the leadership team’s vision is realised, it could mark a turning point in how the company delivers value across one of its most strategically important regions.
“Our customers choose to partner with us in their mineral processing endeavours,” Coughlan said. “We’ve designed this transformation with them in mind. If we succeed in that, the growth will follow.”
This feature appeared in the September edition of Australian Mining.
