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FLSmidth to achieve BBBEE status in South Africa

17.09.2010

Company Announcement to the Danish Financial Supervisory Authority No. 28-2010, 17 September 2010

FLSmidth has signed an agreement to acquire the majority ownership of Roymec (Pty) Limited, located north of Johannesburg, South Africa. Roymec is an accredited contributor under South Africa's Broad-Based Black Economic Empowerment (BBBEE) Act and is in line with the ownership requirements.

 

FLSmidth will acquire 74% of the company share capital for a total price of DKK 142m. The remaining 26% is held by Tamela Roymec SPV (Pty). Roymec's revenue in 2009 was DKK 438m and the company's earnings meet the FLSmidth Group's general earnings requirements.

 

Roymec employs 238 people, and 85% of the company's revenue comes from the coal industry with the remaining 15% spread across the iron ore, diamond and platinum industries.

 

Since its establishment in 1979 Roymec has been supplying mining infrastructure including bulk material handling solutions. Its products include plant and overland conveyors, waste spreader systems, stockyard systems, run-of-mine tips, rail load-out stations, crushing and screening as well as material handling services.

 

Roymec will be integrated in FLSmidth's present organisation in South Africa whose total workforce will become close to 400. This enhanced local setup will provide a strong basis for handling the growing activities in the region where mining industry investments are expected to increase in the coming years.

 

"The local platform of Roymec will give FLSmidth a strong base for supplying equipment under the BBBEE act and permit us to further strengthen our position as a leading regional bulk materials handling solutions provider," Group CEO Jørgen Huno Rasmussen comments.

 

Dependent on governmental approvals, the transaction is expected to close within approximately two months.
    
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Please address any questions regarding this announcement to Group Chief Executive Officer Jørgen Huno Rasmussen, FLSmidth & Co. A/S at +45 36 18 18 21.

 

For further information about FLSmidth, please visit www.flsmidth.com.

 

 

Yours faithfully

Pernille Friis Andersen
Corporate Communications & Investor Relations