Global Cement recently spoke to the Chairman of the Executive Board of the German vertical roller mill supplier Gebr. Pfeiffer about the company’s corporate culture, current cement grinding trends and future trajectories...
Global Cement (GC): Please could you introduce your career at Gebr. Pfeiffer and elsewhere prior to your appointment as Chairman?
Mathias Dülfer (MD): Certainly. I joined Gebr. Pfeiffer as Chairman of the Executive Board with direct responsibility for Engineering and Sales in April 2018, while my board colleague Christoph Geupel manages the commercial side. I recently completed one year at the company. Before the move to Gebr. Pfeiffer, I gained 28 years of experience leading plant machine and process engineering companies. Over the past year I have learned a lot about the cement industry, thanks to the fantastic support from the whole Pfeiffer team. I’ve travelled a lot and I’ve met a lot of great personalities.
GC: What attracted you to Gebr. Pfeiffer and what do you bring to the company?
MD: Gebr. Pfeiffer was attractive to me as a well-known dynamic and innovative producer of equipment for the cement sector. It has similarities in terms of its technical scope and approach to the companies I have previously worked for. From the other side, I think that there are some challenges for cement suppliers right now, particularly with respect to energy efficiency, CO2 reduction and digitalisation. I have been involved with the development of these approaches elsewhere. This experience fitted the company’s needs and meant a good fit for both parties.
GC: What is the most important aspect of your role within Gebr. Pfeiffer?
MD: It is no secret that the cement market is a challenging place at the moment, which is also true for suppliers like Gebr. Pfeiffer. Therefore, my first target is to lead the company through these challenging times. In parallel, the second goal is to lay the foundations for the company to maintain our leading role in the market, also for the future. This will be achieved through further development of our technology relating to the pressing questions of the day. We’ll also be enhancing our international presence, sharpening our internal processes and increasing our service portfolio.
GC: How important is the cement sector to Gebr. Pfeiffer in 2019?
MD: The cement sector represents around 80% of our annual sales, so it is very important indeed. We are dedicated to the sector and focus on offering the best solutions to our many clients. We also serve the gypsum, limestone, clay and other sectors. The biggest gypsum mill in the world was supplied by Gebr. Pfeiffer and in 2018 we commissioned a limestone mill that can grind limestone to a fineness of 0.1% residue on 0.02mm.
GC: Which is the most difficult sector to design and build mills for?
MD: Every product has its challenges and it is not possible to say that any one material is more ‘difficult’ than any other. However, we do learn from handling different products and we are often able to apply the lessons learned in one sector to the others.
GC: How does the company come into contact with new clients?
MD: We are expanding internationally right now based on the mantra ‘Think global, act local.’ Despite our global reach, having a local presence is hugely important to us. Besides this, we organise several customer events around the world. We have an event in Beijing, China going on as we speak and next week I will be in Manila, Philippines, at another of our events. Such events provide a good opportunity not only to inform the market of our solutions but to listen to the requirements and questions of the producers that operate in different markets. We can also rely on word-of-mouth recommendation from our existing customers that are satisfied with our equipment.
It is fair to say that we are constantly in discussion with existing and potential clients. We are not interested in leaving clients ‘in the dark’ once they have purchased a piece of equipment from us. Our approach is about liaising with customers throughout the ownership of the equipment.
GC: What trends do you see in the cement sector at the moment?
MD: At present we are getting more requests for clinker and slag grinding solutions than for raw material installations. This is due to the reduction in the number of greenfield projects and has been observable for the past 1-2 years. Furthermore, this is connected to a trend towards smaller and mid-size mills. Within the last few months we have received lots of orders for mills with capacities of 50-70t/hr, which can easily be produced by our new ready2grind modular system, as well as those with a capacity of around 200t/hr. Other trends include requests for higher cement fineness to drive better strength. Finenesses of 5500cm²/g (Blaine) and above are required, which our technology is perfectly designed for.
Another point, which comes up more and more in our discussions, is a desire for higher automation and a shift towards ‘smart machines.’ To meet this need, we recently launched our advanced maintenance system GPpro. The first example is now in operation. We have implemented intelligent algorithms that allow status-controlled and pin-point maintenance, ensuring optimal equipment availability. GPpro detects early signs of wear in the seal air sealing rings in the grinding roller, in the hydraulic system as well as contamination of the hydraulic oil, to name just a few applications.
GPpro also allows users to analyse data for remote support. We are now working on the next steps of this approach because our customers will benefit greatly from the additional capabilities.
GC: So what is next?
MD: Unfortunately, I cannot talk about new innovations we may be due to launch in the near future. However, I can say that one thing that drives us is a machine that essentially runs and optimises itself. That includes artificial intelligence that allows the machine to learn by itself to stay on top of its performance. We believe this is necessary because skilled operators will become even harder to find in the future. Last, but not least, remote monitoring will allow the company to learn about the use of our mills across the spectrum and to pass best practice into subsequent designs.
GC: Where are the most requests coming from?
MD: There is a clear trend towards developing markets for the reasons I outlined above. If anything, this is now accelerating. South East Asia has recovered particularly well following the most recent financial crisis. Whereas the Indian subcontinent, with nearly 150 mills sold, remains a strong market for Gebr. Pfeiffer, Africa is also a place where Gebr. Pfeiffer has been chosen by a good number of clients. The ready2grind option is particularly popular in all regions where smaller terminals are the right choice. Europe nevertheless remains an important market for us as well.
GC: How do Gebr. Pfeiffer and the client arrive at a final design after first contact?
MD: During the design and concept discussions, we do not like to think of the company as a machinery supplier, but rather as a consultant and partner. We seek to understand the possibilities of the client’s market and the type of material they are going to work with to arrive at the best concept. Some companies, often the major players, will already know exactly what they are looking for. Others are new to the market and need competent assistance. Therefore, we offer our process design experts, test facilities, laboratories and maximum support.
GC: Can you take us through the construction and commissioning of a mill?
MD: At all times we keep the client informed so it can prepare itself for the arrival of the equipment, for example what is required in terms of foundations or steel structures. Normally this goes along with visits to the site to check that everything is in place before delivery. From the signing of the contract to delivery takes around six to nine months for a small to mid-size mill. For larger mills it is more like 10-12 months. All equipment is delivered as pre-assembled as possible.
During commissioning, at the very least there will be supervision from Gebr. Pfeiffer’s engineers. If a client requests a full engineering, procurement and construction (EPC) service, we can also provide this. After installation and commissioning, we will stay on site to optimise the equipment. Afterwards, we stay in close contact with the client for the lifetime of the mill.
GC: Is the current consolidation seen in the cement sector an opportunity or a threat?
MD: There is no doubt that, presently, the consolidation of some major cement players has delayed a number of projects. On the other hand, those players will return strengthened in the medium-term. I would say that the projects have been postponed, rather than cancelled.
There are also other opportunities for suppliers like Gebr. Pfeiffer that arise from the consolidation at the top. New and smaller players identify opportunities and are jumping into some new markets. They can make decisions very rapidly.
GC: What are the largest threats to and opportunities for Gebr. Pfeiffer in the 1-5 year timeframe?
MD: The largest threat to Gebr. Pfeiffer, and I would say the cement sector as a whole, is if we do not adequately address the pressing issues around climate change and CO2 emissions that the industry and the world face. This is why we continue to strive for efficiency in our designs, as well as lower CO2 emissions.
The other part of your question is linked to this. The team at Gebr. Pfeiffer is hungry to find solutions to these issues to transform our approach to suit the new environment. That represents a tremendous opportunity for the company to make use of its strength as an innovative and dynamic systems supplier. With the MVR we have a very strong range of mills that can capitalise on the trend towards lower power consumption.
With regard to the use of supplementary cementing material as well as a growing variety product portfolio, the MVR offers the greatest possible application and a maximum of flexibility for our customers. The extremely low vibration and the low water requirement are further advantages. I am convinced that Gebr. Pfeiffer is well placed to tackle the challenges of the cement market well into the future.
GC: Thank you very much for giving us a great insight into your company.
MD: You are very welcome indeed!