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| Company type | Publicly traded |
|---|---|
| Traded as | FWB: KWG |
| Industry | Engineering |
| Founded | 1856 |
| Headquarters | Cologne, Germany |
| Key people | Jianlong Shen(CEO), Jürgen Luckas (CFO), Matthias Jochem (COO), Matthias Mersmann (CTO) |
| Products | Machinery, automation systems and services for the cement industry |
| Services | Cement plant equipment and construction, spare parts , process engineering, project management |
| Number of employees | 880 employees |
| Website | khd.com |
KHD Humboldt Wedag (KHD) is an international engineering company that supplies machinery, automation solutions, spare parts, and services, including process engineering and project management, to the global cement industry.
Based in Cologne, Germany, the company employs more than 850 people worldwide, operating subsidiaries covering the Americas, India, the CIS, and the Asia-Pacific Region, as well as sales offices in Türkiye, Dubai, and Iran.
The holding company KHD Humboldt Wedag International AG is listed on the Frankfurt Stock Exchange.
History
Early Years: 1856 - 1914
KHD traces its roots back to 1856 and the foundation of Maschinenfabrik für den Bergbau von Sievers & Co. by Martin Neuerberg, Wimmer Breuer, and Hermann Sievers in the Cologne suburb of Kalk. The company initially focused on the manufacture of perforated steel sheets for screens, jigs, and percussion tables used in the mining industry. Under the inventive leadership of Neuerberg, the product range soon expanded and the company quickly established a name for itself within the European mineral processing industry.
By 1867, the company had grown sufficiently to the point it could install a large-scale lead-zinc sorting facility at the Holzappel Mine, incorporating several roller and stamping mills, 32 jigs, and associated steam engines and boilers. It was also active in the regional coal industry, building 100 coal washing facilities by 1881.
A decade earlier, in 1871, the company had adopted one of the names with which it would be associated to this day: Maschinenbau Anstalt Humboldt in honor of German scientist, Alexander von Humboldt.
The late 1800s was a period of restructuring and diversification for the company after rapid expansion in 1860s. By the mid-1880s, the company was building complete refrigeration facilities for breweries and cold storage warehouses. Other ventures included:
- Humboldt Steel Construction, which built the Frankfurt Opera House in the late 1870s.
- Equipment and plants for the rubber, chemical, metallurgical, and cable and wire industries.
- Coal briquetting plants.
- Rotary kilns and tube dryers.
In 1897, the company moved into the manufacture steam locomotives. It soon received an order for 25 locomotives from the German national railway. Production would peak at 150 locomotives per year and would be the mainstay of the business until World War One. The company would also supply steam turbines for Germany’s substantial electric power network.
1914 – 1945: becoming KHD
The outbreak of war put an abrupt end to the early 20 Century boom at the Humboldt factory. Although production of locomotive and railway cars increased and the company began production of armaments, it faced challenges sourcing spare parts for its machinery. Skilled labor was also in short supply with women and prisoners of war drafted in to work at the company’s facilities.
These wartime challenges were soon overtaken by the crisis experienced at the end of the war, as reparations and inflation took their toll on the German economy. It was at this time that Peter Klöckner, an expert in company restructuring and who had been Chairman of the Humboldt Supervisory Board since 1915, began to have a significant influence on the company’s development.
To keep the Humboldt factory afloat through the 1920s, Klöckner reduced the capacity and diversity of machines being manufactured and built a strategic relationship with nearby Motorenfabrik Deutz, another company with which he had strong associations. Deutz was looking to expand its capacity at the time and began to pass on assembly contracts for tractors and locomotives to Humboldt.
At the same time, Humboldt took over the design and manufacture of cement production equipment from another Klöckner enterprise, his Mannstaedt factory in Troisdorf. In 1938, this association was formalized with the founding of Klöckner-Humboldt-Deutz AG. The company has been known by these initials ever since.
During World War Two, KHD again switched to a wartime footing, manufacturing vehicles for the German armed forces. The company relied on forced labor through the war. In 2000, the company recognized its moral responsibility for the use of forced labor, becoming a founding a member of the Remembrance, Responsibility and Future Foundation, which supported claims for compensation by victims of the Nazi regime.
1945 onwards: continuity and change
The post-war period would be one of innovation and global expansion at KHD. In the decade between 1945 and 1956, the company would develop heavy-liquid flotation technology and the baffle plate thickener for mineral processing, as well as the suspension heat exchanger for the cement industry. This latter innovation would lay the ground for the company’s future role as a builder of cement plants.
In the second half of the 20th century, KHD developed a range of technologies that would define the cement and mineral processing industries. In the cement industry, the company’s innovations included:
- The introduction of the cyclone preheater in 1953, based on a Czech patent.
- The first heat exchanger with calciner technology at Dotternhausen cement plant in 1965.
- Installation of the first short rotary kiln at Spenner cement plant in 1980.
- Developments in grate cooler technology and the launch of a walking floor cooler in 2005.
- The introduction of the roller press for cement grinding at the Lengerich cement plant in 1985.
In the coal and mineral processing industries, KHD developed high-intensity magnetic separators, as well as improvements to vibrating mills and jigs. In addition, it continued to supply equipment to the smelting, environmental technology, chemicals, and steel construction industries.
In the spring of 1969, the company acquired the final piece of its modern name when it bought a majority holding in Westfalia Dinnendahl Gröppel (Wedag) of Bochum.
As the 20 Century drew to a close, however, the company was brought to crisis point after taking substantial losses on three cement projects in Saudi Arabia. Consequent restructuring and a string of divestments would see the company focus on its cement and mineral processing businesses. The latter would be divested in 2009 as MBE Coal & Minerals Technology and MBE Cologne Engineering, leaving KHD to concentrate solely on cement.
The 21 Century
KHD survived the crisis of the late 20 Century. Into the new millennium, it continued its tradition of developing new technologies.
Through the first two decades of the 21 Century, the company launched a range of technologies aimed at reducing the environmental impact of cement production, notably to cut NOx emissions and to enable higher rates of alternative fuel use at cement plants.
This time period also saw increasing moves by the cement industry to cut its greenhouse gas emissions as part of global efforts to mitigate the impacts of climate change under the Paris Agreement. In 2023, KHD launched its Cement beyond Carbon vision, acknowledging that the task to cut emissions had become the driving force within the cement industry and would continue to be so in coming decades.
The Cement beyond Carbon strategy comprises two distinct timeframes:
- The period to 2030 during which existing and soon-to-be-commercialized technologies are rolled out to reduce greenhouse gas emissions. This includes technologies to increase the use of alternative fuels up to 100%, the use of calcined clay in cement, and the switch to oxyfuel combustion to support carbon capture.
- The period post-2030 when new technologies take the cement industry to net zero.
Supporting the journey to net zero and empowered by the emergence of the Industrial Internet of Things and advanced machine learning, KHD also invested heavily in digital technologies that optimize the cement-making process and support the integration of the solutions noted above. These latest digital advances build on the company’s more than five decades’ experience in cement plant automation dating back to the 1970s and its XPERT systems.
Global operations
KHD began exporting its equipment in the 1860s, initially to neighboring European countries, and then further afield to South America and Mexico in the 1870s, and later India, Egypt, and Turkey, among others. The company was also early to establish sales offices in key markets, supported by travelling engineers.
At the turn of the 20 Century, export conditions become more difficult. In response, KHD established subsidiaries abroad and, by 1909, there were branches in England, France, Austria, and Hungary. Russia would follow later. However, the outbreak of war in 1914 had a chilling effect on the company’s international activities: it was only after 1945 that its involvement in the export market would surpass pre-1914 levels.
Although the immediate post-war years were marked by reconstruction of its German business, international activities were soon up and running again with KHD supplying mechanical equipment to the Sivan cement plant in Turkey in 1949. Exports continued apace through the 1950s until they came to account for more than half of the company’s orders. The 1960s saw another retrenchment however as key European markets were lost as mining operations on the continent were dramatically reduced.
The 1960s also saw a change that would shift the way KHD operated in international markets. Increasing transportation and customs costs reduced the competitiveness of its products abroad; it also faced growing competition from local firms. KHD’s response was twofold: it began to work with local partners and to re-establish subsidiaries in key markets.
The first of these new subsidiaries – Humboldt Wedag Inc. – was formed in the USA. KHD had become well known to American cement companies thanks to its preheater, which had been marketed in the USA by licensee Fuller Co. The company opened its first sales office near New York City in 1974, switching location to Atlanta in the 1980s, where it remains today.
The company would also look east to Asia. KHD had been supplying equipment to the Indian mining sector since the 1960s, establishing its own workshop serving its mining clients in 1979. But for the cement industry, it would take a different tack, having a long-running cooperation agreement with Indian engineering company, CIMMCO, from the late 1970s through until the 1990s.
In 2000, however, it established its own cement subsidiary located in New Delhi: Humboldt Wedag India Pvt Ltd. This was followed in 2006 by the opening of a workshop in Faridabad, where the company now operates a number of manufacturing and maintenance facilities, including a state-of-the-art production and refurbishment facility for roller press rollers.
Continuing to look East, KHD established a Chinese subsidiary in Beijing. KHD Humboldt Wedag Machinery Equipment (Beijing) Co. Ltd gave the company a foothold in the world’s largest cement market as the Chinese construction industry was booming.
From its Beijing location, KHD serves the entire domestic market of China.
Meanwhile, the 1990s saw KHD strengthen its presence in the former Soviet Union with the acquisition of ZAB, a company with a history that mirrors KHD’s own.
Cold Founded in 1870 as G. Polysius Eisengießerei und Maschinenfabrik, it became widely known for its mineral processing and cement production equipment. However, its location in Dessau, East Germany, resulted in its conversion to a Soviet joint stock company during the Cold War. After the fall of the Soviet Union, it was reformed as Zementanlagen- und Maschinenbau GmbH and was bought by KHD in 1993.
Corporate affairs
Corporate structure KHD is administered via a central holding company, KHD Humboldt Wedag International AG, which is headquartered in Cologne, Germany, and is listed on the Frankfurt Stock Exchange.
The Cologne headquarters houses all central group functions, including the Center of Excellence, as well as Humboldt Wedag GmbH, the company’s subsidiary for EMENA & APA. Four regional subsidiaries cover remaining key markets:
- CIS/Central Asia: ZAB Zementanlagenbau GmbH Dessau) in Dessau, Germany.
- India and SSA: Humboldt Wedag India Pvt Ltd in New Delhi, India.
- Americas: Humboldt Wedag Inc. in Atlanta, USA.
- China: KHD Humboldt Wedag Machinery Equipment (Beijing) Co. Ltd in Beijing, China.
Humboldt Wedag GmbH also houses the company’s three regional sales offices in: Istanbul, Türkiye; Dubai, UAE; and Tehran, Iran.
Center of Excellence and Technical Center
Research and development has been a feature of KHD’s operating principles since the early days under Martin Neuerberg and Wimmer Breuer. In the 19 Century, Neuerberg built a test stand to test new machines and technologies for individual contracts. A research center was constructed about 1912 at the same location and became the center for innovation for the company, with research staff undertaking laboratory and prototype testing of new processes and equipment.
The research center moved into new facilities in 1995 and would continue to grow through the 20 Century as the company entered new market segments. In 1982, the research division moved again to a larger complex in Cologne-Porz. It stayed here until 2001, when it was moved back to its original location in the Kalk district of Cologne.
Today’s KHD Center of Excellence and Technical Center are the descendants of Neuerberg’s original test stand. Located at group headquarters in Cologne, the Center of Excellence provides the company’s regional subsidiaries with process engineering, plant layout, and machine design support. It also houses the Technical Center, which plays a key role in ensuring the company’s latest developments work in real-world conditions. The Technical Center also provides small-batch up to industrial-scale testing of raw materials as the basis for grinding plant design and machine selection.
Management
As per German corporate law and governance code for publicly-traded companies, KHD is managed by a two-tier board structure:
- The management board is responsible for day-to-day running of the company.
- The supervisory board is responsible for supervision and control of the management board.
As of March 2024, the management board of KHD comprises:
- Jianlong Shen, CEO
- Jürgen Luckas, CFO
- Matthias Jochem, COO
- Matthias Mersmann, CTO
As of March 2024, the KHD supervisory board comprises:
- Jiayan Gong, Chairman
- Gerhard Beinhauer, Vice Chairman
- Xiaodong Wu
- Jingnan Yang
The management board is assisted by the general managers of KHD’s subsidiaries:
- André Sybon, general manager for the KHD Center of Excellence, Humboldt Wedag (Germany)
- Rainer Krüper, general manager for sales and execution, Humboldt Wedag (Germany)
- Ashok Dembla, general manager, Humboldt Wedag India Pvt Ltd
- Dwayne Holland, general manager, Humboldt Wedag Inc.
- Wolfgang Pajonke, general manager, ZAB Zementanlagenbau GmbH Dessau
- Sibo ‘Steven’ Yan, general manager of KHD Humboldt Wedag Machinery Equipment (Beijing) Co. Ltd
Ownership
Ownership of KHD has changed a number of times over its history. As of March 2014, the China State-owned Assets Supervision & Administration Commission is the largest shareholder in KHD Humboldt Wedag International AG with a 89.02% stake, via AVIC Beijing Co. Ltd, a subsidiary of Aviation Industry Corporation of China. The only other significant investor in the company is IA Reinsurance Co. Ltd with a 5.701% stake.
Partnerships
In April 2013, KHD appointed Weir Minerals, a part of Weir Group plc, as its exclusive global agent and recommended service provider for high-pressure grinding rolls for mineral processing applications.
Sustainability
ESG at KHD is led by a group-wide sustainability manager. Along with the management team, the sustainability manager is responsible for each of the three pillars of ESG performance. The company’s ESG ambitions are supported by a Global Sustainability Roadmap, which sets targets for each of the three pillars:
- Environmental responsibility: climate change, greenhouse gas emissions, natural resources, pollution and waste, environmental opportunities.
- Social responsibility: human capital and development, health and safety, supply chain, labor standards, product liability, social opportunities.
- Governance responsibilities: distribution of rights and responsibilities, rules and procedures, business ethics, financial and tax transparency.
See also
References
- KHD Humboldt Wedag: Who we are
- KHD Humboldt Wedag: Locations
- Boerse Frankfurt: KHD Humboldt Wedag International AG
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- Hast, Adéle (1991). International directory of company histories. St.James Press. p. 543. ISBN 9781558620599.
- "KHD Humboldt Wedag International Ltd. Announces the Completion of the Sale of Its World-Wide Coal and Minerals Operations and Its Manufacturing Facility in Cologne", Press release, Reuters, 8 October 2009.
- KHD Humboldt Wedag: Cement beyond Carbon
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- KHD Humboldt Wedag: Our Leadership
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- DGAP-News: KHD Humboldt Wedag International AG: KHD signs License Agreement with Weir Minerals for HPGR Technology, Press Release Global News Wire 18 April 2013
- KHD Humboldt Wedag: Sustainability