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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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