Mammoet in 2019
Mammoet supports clients with Smarter, Safer and Stronger solutions to any heavy lifting or transport challenge. The company aims to develop long-term relationships in order to understand its clients' businesses and challenges best and so deliver the most efficient and cost-effective approaches. Mammoet has a unique global network and an unparalleled fleet of equipment. Through deep and longstanding engineering expertise and the highest quality and safety standards, Mammoet brings an intelligent and flexible approach to projects across a wide range of industry sectors worldwide.
In 2019, Mammoet announced its intention to acquire ALE, a British heavy lifting and transport specialist, to create a leading company in the engineered heavy lifting and transport sector. The transaction was approved by the relevant competition authorities early January 2020. Mammoet and ALE have a complementary geographical presence on all continents and a well-balanced portfolio of activities in sectors such as the petrochemical industry, renewable energy, power generation, civil construction and offshore industry. Combining the two companies enhances scalability, innovation capabilities and efficient mobilisation as well as the ability to deliver services in the safest, most efficient and cost- effective way, from single day local jobs to multi-year megaprojects.
Following the announcement, an integration plan was developed that focuses on bringing the two organisations together on a management, commercial and operational level. Efforts are aimed at creating a common language in ways of working and the quality of processes. A common Key Account Management structure will build closer customer relations, increase lead generation and support local and regional business.
Mammoet's results depend on developments in the industries it operates in and, to a lesser extent, on the general economic climate. The heavy lifting and transport market is late cyclical and in 2019 was still affected by the lack of investments in the Oil & Gas industry and its sub-segments such as petrochemical and offshore. Large Oil & Gas projects were postponed or delayed and there was little progress in ongoing projects in many of the geographies in which Mammoet operates. Because of these slow markets, competition became even stronger and more aggressive as margins were under pressure and negatively impacted businesses.
The different markets witnessed different dynamics. The US market continued to be slow, the activities in Canada West recovered reasonably where a new market approach reinstated Mammoet as a trusted, competent partner. The markets in Europe and Russia showed improvement with a good mix between the rental market, maintenance and the execution of larger projects. In Australia and Asia Pacific, Mammoet participated in a number of large wind related projects with typical challenges due to the nature of this business. Operating in the Middle East remained difficult due to low-cost competition.
During the year, Mammoet focused on further implementing the "Reshape to Win" strategy. This covers various areas of the business, such as revenue growth, diversification into other industries, improvement of Safety, Health, Environment and Quality (SHE-Q) and purchasing. To further improve efficiency, efforts were made to enhance project and contract awareness throughout the organisation. With the number of wind-related projects increasing, focus was placed on building up expertise in and knowledge of onshore wind projects.