Apasco, S.A. de C.V. in Mexico, which is part of Holderbank of Switzerland, the world's largest cement producer, has just signed a contract with F.L.Smidth & Co. A/S at a total value of 55m euro (410m Danish kroner).
A member of the F.L.Smidth-Fuller Engineering Group, F.L.Smidth & Co. is to expand the customer's Ramos Arizpe plant situated near the city of Monterrey 250 km from the Texan border, more than doubling its capacity to 6,150 tonnes cement clinker per day. The 3,150 tonnes per day expansion project is based on state-of-the-art FLS technology and includes three vertical mills, one each for grinding raw meal, coal and cement clinker, a two-support kiln and an SF Cross-Bar clinker cooler.
The contract negotiations with Apasco began in April this year. Delivery of the mechanical equipment is due to start in January 2001 and the plant is expected to come on stream by the end of 2001. Financed by the customer in US dollars, the order sum will be taken to income in 2000 and 2001 in step with the progress in engineering work and machinery supplies.
The order is remarkable in several ways. In addition to being the largest order received from the Holderbank group for several years, it is F.L.Smidth & Co.'s largest contract in Mexico for the past twenty years, reflecting both the fact that Mexico's economy has regained strength after the crisis in 1995 and the expectation that its current rapid growth is set to continue.
A large part of the machinery will be manufactured in Mexico, actively supported by F.L.Smidth-Fuller's local office. The contract is based on engineering work being developed in close partnership with Holderbank Engineering Consulting in Canada.
The efficient contract negotiation process and delivery schedule combined with the new form of customer partnering bodes well for the F.L.Smidth-Fuller Engineering Group's continued presence in the Mexican cement market where F.L.Smidth & Co. has been represented since 1963.
Mexico's cement industry i
s experiencing steady growth reflecting the increase in annual cement consumption from 19.4m tonnes in 1989 to 25.8m tonnes in 1999. Despite the economic crisis cement consumption has thus risen 33 per cent during the past decade and has now reached a level of 251 kg per annum for each of Mexico's 97 million inhabitants.
FLS Industries A/S
Corporate Public Relations