Company Announcement to the Danish Financial Supervisory Authority No.
27-2013, 4 November 2013
FLSmidth and its affiliated companies have signed a number of contracts with the
Nigerian cement producer; Dangote Cement PLC ("Dangote") for operation and
maintenance of certain production lines at their cement plants in Nigeria for a
period of five years. The parties have agreed not to disclose the value of the
contracts. FLSmidth has had a business history with Dangote Cement PLC which
includes the supply of two of the four production lines at Dangote Cement PLC's
plant at Obajana, Kogi State, Nigeria.
The contracts, which together constitute the largest operation and maintenance
contract awarded to FLSmidth up until now, is for the operation and maintenance
of the plant from crusher to packaging, including full upgrade of the automation
control systems. FLSmidth will start the operation and maintenance at one of the
plants in about six month's time while the operation and maintenance of the
other lines will follow subsequently.
"These orders underline FLSmidth's abilities and growing role as operator of
cement plants. In choosing FLSmidth for the operation and maintenance of their
cement plants the Dangote Group placed great emphasis on our focus on the use of
local manpower and training, including our proven ability to train large numbers
of staff through FLSmidth Institute - the current contracts include a workforce
of around 1000 people," Group Executive Vice President Bjarne Moltke Hansen
comments.
Dangote Cement PLC is the largest cement producer in Nigeria with over sixty
(60) percent market share and the fastest growing cement producer in Africa
having a production capacity projected at about 50 million tonnes of cement per
year in the coming years.
"After having decided to have an external partner operate and maintain our
cement plants the main criteria has been to find a service provider who can
provide ongoing operational reliability. And this is something we believe that
FLSmidth can deliver," President and CEO of the Dangote Group Alhaji Aliko
Dangote says.
The contracts will be booked by the Customer Services division and contribute
beneficially to FLSmidth's earnings until 2018. The order intake will be
recognised on a 12 month rolling basis throughout the contract period.
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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#1740225]
