Increase in Metso Life Cycle Service agreements
More than 100 new LCS contracts enhance customer relationships in Minerals and Aggregates segments
METSO have strengthened their position as a trusted partner in the provision of customized solutions for mining and aggregates clients with an increase in the number of Life Cycle Services (LCS) agreements. In 2024, the company secured more than 100 new LCS contracts with both global and regional mining companies, as well as large quarries and aggregate contractors.
According to Metso, last year customers increasingly recognized the value of having performance-based contracts in place, as well as the benefits of including field service offerings within the contracts to provide essential on-site technical expertise and support.
‘In addition to newly signed contracts, we achieved progress in transforming our contract portfolio mix with the addition of more performance-based agreements,’ said Miika Tirkkonen, senior vice-president of integrated service solutions at Metso.
‘In 2024, we reached more than 40% growth in performance-based contracts, which include mutually agreed targets with customers and commercial models that foster win-win partnerships. Having Metso’s field service experts work alongside the customer’s personnel on site also enhances their skills and promotes safer working methods.’
The LCS agreements made in 2024 are part of a portfolio of more than 550 long-term LCS agreements globally. The average duration of a contract is three years but can range from 12 months to multiple years of partnership. The orders are booked on a phased basis, depending on the length and type of the agreement. More than two-thirds of the orders were booked in the Minerals segment and the remainder were booked in the Aggregates segment.
Life Cycle Services encompass the complete range of Metso’s aftermarket portfolio, from spares and wears to advanced maintenance, remote monitoring and other expert services. The company assists customers in enhancing safety and environmental standards, boosting reliability and production for greater resource efficiency, and optimizing the overall cost of ownership.
