Company Announcement to the Danish Financial Supervisory Authority
No. 1-2009, 19 January 2009
The global economic downturn results in a continuing declining level
of investments in both the cement and minerals industries. Despite a
historically high order backlog FLSmidth therefore considers it
necessary to proactively reduce its workforce in order to create the
necessary flexibility and be better prepared for future uncertainties
in our markets.
The reduction in workforce is expected to primarily affect FLSmidth's
three project centres in Valby, Denmark; Bethlehem, US; and, to a
very limited extent, Chennai, India.
The aim is to reduce the number of jobs globally by approximately
600, representing about 6% of the workforce.
Statutory national negotiations will be initiated with the relevant
labour market organisations.
FLSmidth expects that the downsizing of its employee base
successively together with other measures will reduce the Group's
cost base with a limited positive effect on the earnings for 2009 and
have full impact in 2010.
-------------------------------------
Please address any questions regarding this announcement to Group
Chief Executive Officer Jørgen Huno Rasmussen, FLSmidth & Co. A/S at
+45 36 18 18 00.
For further information about FLSmidth, please visit
www.flsmidth.com.
Yours faithfully
Pernille Friis Andersen
Corporate Communications & Investor Relations
