Company Announcement to the Danish Financial Supervisory Authority No.
31-2012, 30 July 2012.
FLSmidth has been awarded a contract by the Egyptian National Cement Company for
operation and maintenance of two of their production lines located in Cairo,
Egypt. The parties have agreed not to disclose the value of the contract which
covers a period of seven years.
The contract which is the largest operation and maintenance contract awarded to
FLSmidth up until now includes supply of spare parts and consumables,
development of a full operation and maintenance organisation, knowledge transfer
to local employees and implementation of industry best practice.
FLSmidth is currently carrying out an upgrade of the two production lines, which
were originally supplied by German KHD and have been in operation since the mid
1980's. When the upgrade is completed in early 2014 each line will have a
capacity of 5,200 tonnes per day, as opposed to the current capacity of 3,800
tonnes per day.
Egypt is a very well-known market to FLSmidth, and the company has supplied
several cement plants in the country, which is undertaking large investments in
the development of its infrastructure.
"The achievement of this operation and maintenance contract is a great example
of the strength and potential of FLSmidth's O&M-concept - we are now for the
first time also taking over the operation and maintenance of a plant, which was
built by a competitor and consists of a competitor's equipment, and still
FLSmidth is in a better position to meet production and quality targets and
optimizing the customer's earnings capacity," Group CEO Jørgen Huno Rasmussen
comments.
The order will contribute beneficially to FLSmidth's earnings until 2019.
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Please address any questions regarding this announcement to Group Executive Vice
President Bjarne Moltke Hansen, 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
[HUG#1630344]
