The partly privately owned Iranian Khazar Cement Company, (FKCC) has placed an order with the F.L.Smidth Group for upgrading and modernising its cement plant in Khazar, 175 km north-west of the capital Tehran. The contract value is EUR 14m, or DKK 105m.
FKCC is part of Fars & Khuzestan Cement Company Group, Iran's largest cement producer. The order, the third in a string of orders recently won by F.L.Smidth from the Iranian cement industry confirms the need for upgrade of the country's many cement plants.
The upgrade will double the production capacity of FKCC's cement plant to 4,000 tonnes cement per day. The machinery and equipment will be delivered over the next 15 months. The plant is expected to come on stream in the summer of 2005.
The contract comprises a raw mill, a cement mill with MAAG gearbox and upgrade of the existing kiln system including a new clinker cooler, in addition to upgrade of the existing control system by F.L.Smidth Automation, and new electrostatic precipitators to be supplied by F.L.Smidth Airtech.
The development on the Iranian cement market continues to offer good sales potential for the F.L.Smidth Group. The country sees stable growth in the demand for cement. Today the cement industry has an estimated production capacity of nearly 30m tpy. The government plans to double this capacity over the next 10 years to meet both the increase in population and the growing cement consumption.
The contract will not affect the 2003 earnings prospect of FLS Industries.
FLS Industries A/S
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