Our strategy & business model
As a leading global engineering solutions provider, we are committed to creating and supplying exceptionally performing products and services to meet the rigorous demands of our customers around the world – excellent engineering solutions that enable the delivery of vital power and industrial processes in today’s society.
We work together to create engineering solutions which help our customers deliver processes vital to society.
· Customer focus: Listening to the voice of our external and internal customers in everything we do
· Engineering excellence: Adding value by meeting the changing needs of our customers
· Integrity: Consistency, openness and honesty applied across all our relationships, always meeting our promises
· Self-determination: Maintaining our freedom of action through prudent, highly professional financial and risk management throughout the business
· Valuing people: Trusting and respecting one another and supporting, challenging and developing each other to achieve our maximum potential personal contribution
· Working together: Working across boundaries to realise the full potential of Weir’s global capabilities
· Leadership: Harnessing the energy of our people to achieve our shared ambition for growing business success
The Group operates and targets growth in three main markets: Minerals, Oil & Gas and Power, all of which are high-growth, long-cycle markets with positive fundamentals.
To build upon the existing geographic footprint, the Group will target growth in existing markets and develop new growth in emerging markets.
The Group will deliver sustainable organic growth through its existing business model of original equipment supply & aftermarket support. The business invests in technology, infrastructure and people to grow both market share and the installed base of original equipment which will provide future recurring aftermarket opportunities and exposure to customers’ capital and operating expenditure. This organic growth is supplemented by skillfully integrated, targeted acquisitions.
While continuing to focus on operational excellence and the development of functional initiatives, we will broaden our competitive portfolio of products and added-value services, with the emphasis on those products that will provide a strong stream of aftermarket opportunities.
The Group strategy is supported by our four pillars which drive growth: value chain excellence, innovation, collaboration and global capability.
| 2012 Group priorities |
2012 Progress |
| Successfully integrate Seaboard and Novatech to leverage products, skills and geographic reach |
Integration complete with Seaboard’s North American and international growth opportunities validated |
| Deliver on Weir SPM multi-site expansion plans and add capacity in Minerals Division |
North American oil and gas capacity realigned to strongest growth opportunities; Minerals foundry expansion plans underway |
| Build on new products momentum with a specific focus on Oil & Gas Forum initiatives |
Five new products launched for oil and gas markets; robust 2013 innovation pipeline |
| Enhance supply chain performance to drive operational efficiency and increase customer responsiveness |
Implemented Weir Procurement System; established and expanded Global Centres of Excellence for key spend categories; increased best cost country sourcing |
| Minerals Division priorities |
2012 Progress |
| Expand global production capacity |
- Double digit capacity increases in Chilean and European foundry operations to support growth, with planning underway for further global foundry expansion
- Capacity added in Europe, Mexico and South Africa to support the broader product range, with investment in infrastructure and tooling to support comminution products and rubber lining systems
- Actions undertaken to align divisional capability with global customer demand
|
| Continue to drive market share in ancillary products and services |
- Linatex product developments supporting increased cross-selling
- Strong growth in slurry transportation ancillaries
- Good revenue performance from organically developed screens range
|
| Take product innovation to new areas within the mill circuit |
- Organic development of screen media and mechanical seals
- Significant materials development for minerals and oil sands markets with new hard chrome white irons and oil sands hose technologies
- New Multiflo Highwall pump launched for dewatering applications
|
| Build on the collaborative success of the Oil & Gas Forum to develop new products and services |
- Gladiator Slurry Pump designed and launched with Minerals materials technology contributing to enhanced product wear life
- Swellable packers for oil and gas downhole drilling applications developed using Minerals elastomer technology and gaining market acceptance
- Linatex frac discharge hose designed for frac slurry transportation with independent testing showing greater abrasion resistance than competitor products
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| Oil & Gas Division priorities |
2012 Progress |
| Deliver on capacity expansion |
- Expanded flow production capacity in the US and Canada, with aligned investment in broadening and deepening the North American service offering
- Completed rapid response manufacturing centre in Dubai and built a dedicated facility in Abu Dhabi to meet expected demand growth in tubular repairs and valves
- Opened API and ISO accredited service facility in Basra to cater for the growing oilfield equipment market needs of international oil companies in Iraq
|
| Acquisition integration and capturing synergy opportunities |
- Integration activities completed on schedule for Weir Seaboard and Weir Novatech, with Seaboard’s North American and international growth opportunities validated and detailed action plans in place.
|
| New product development |
- Launched five new products for upstream markets, developed by the Oil & Gas Forum, focused on meeting customer demand for longer life products in shale applications, including the STAMPEDE swellable packer and SPM Duralast fluid end
- Broadened pressure control portfolio with the development by Weir Oil & Gas Dubai of a DNV certified manifold for major oilfield service customers
- Successful launch of bundled aftermarket offering, reducing operational complexity for customers
|
| Completion of downstream restructuring |
- Production of all overhung and single stage vertical pumps underway at fully operational Polish value engineering centre
- Low-cost supply chain established
|
| Power & Industrial Division priorities |
2012 Progress |
| Improve cost competitiveness through increased product localisation in India, South Korea and China |
- Selected valve product transfers to India and China well underway
- South Korean input more than doubled
- Over 30% of valve output sourced from low cost countries
|
| Capitalise on a broader product range and increased routes to market through a fully integrated sales structure |
- Overall input up 18%
- Emerging market sales hub input up 73%
- Consistent customer relationship management system established, enhancing communication, collaboration and sales and operational planning
|
| Expand presence in oil and gas end markets |
- Oil and gas market revenues up 28%
- Joint marketing initiatives with Weir Oil & Gas established
|
| Develop competitive advantage through product innovation |
- Input from new product initiatives more than doubled
- Order secured for design, manufacture and qualification of pressure relief valves for the world’s first fourth generation nuclear reactor in China
- Differentiated design developed in nuclear severe service and control and choke valve ranges
- A new range of steam safety valves, STARSTEAM, developed for overpressure protection of power boilers
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| Group priorities |
| Continue to enhance supply chain performance to increase customer responsiveness and benefit from Group leverage |
| Capture North American and international pressure control growth opportunities |
| Extend Minerals presence in comminution market |
| Implement and drive growth through integrated global valves platform |
| Deliver enhanced IT platform to support collaboration |
| Improve working capital performance to enhance returns |
| Minerals Division priorities |
| Develop global foundry capacity to meet aftermarket demand |
| Invest in comminution process knowledge and materials wear technology |
| Reduce lead times and working capital through global supply chain initiatives |
| Continue development of Minerals and Oil & Gas product portfolios through collaboration and innovation |
| Oil & Gas Division priorities |
| Develop aftermarket business model and bundling strategy in pressure pumping unit |
| Continue momentum in new product development |
| Capitalise on growth opportunities in Saudi Arabia and Iraq |
| Capitalise fully on Seaboard domestic and international growth opportunities |
| Integrate and realise the benefits expected from the Mathena acquisition |
| Enhance pressure control offering in North American upstream markets |
| Increase supply chain flexibility and reduce working capital |
| Power & Industrial Division priorities |
| Embed global valve structure and drive global sales hub performance |
| Further leverage valve aftermarket opportunities |
| Develop operational capabilities to support higher activity levels |
| Internationalise hydro, wind and power service offerings |
| Continue expansion in oil and gas markets |
| Continue new product development and product extension |