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FLSmidth receives contract for large cement project

18.05.2012

Company Announcement to the Danish Financial Supervisory Authority No. 25-2012, 18 May 2012

FLSmidth has been awarded a contract worth approximately USD 136m (DKK 780m) by a customer in the United States for modernisation of their production facility.

The purpose of the EPC (Engineering, Procurement, Construction) project is to convert one of the plant's existing wet process kilns to a preheater, precalciner kiln. As a result, the customer will be able to better fulfil their key environmental objectives; reduction of emissions as well as lower energy consumption and hence a smaller carbon footprint.  

The equipment scope includes an FLSmidth drier crusher, modification of the existing kiln, a new 1-stage preheater with calciner, a kiln bypass system, an FLSmidth Cross-Bar(TM) cooler, a coal dosing system by FLSmidth Pfister and an ATOXTM solid fuel mill with an FLSmidth MAAG Gear reducer.

With the installation of three new FLSmidth fabric filters, the project will significantly improve the plant's ability to reduce the particulate emissions. Similarly, an FLSmidth control system will optimise operational efficiency. The scope of supply also includes a new HOTDISC(TM) reactor that will allow the plant to increase its consumption of whole car tyres, thus increasing the use of alternative fuels.

The awarding of this contract demonstrates FLSmidth's ability to help US cement producers prepare for the anticipated National Emission Standards for Hazardous Air Pollutants (NESHAP) regulations.

"The United States cement industry is facing a number of challenges, ranging from a slowly recovering economy to significant regulatory changes in plant emission standards. We are very pleased to work with one of our much valued customers as they take a leading role in investing in the future of this industry," Group CEO Jørgen Huno Rasmussen comments.

The order will contribute beneficially to FLSmidth's earnings until mid 2014.

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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 77.

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

Yours faithfully

Pernille Friis Andersen
Corporate Communications & Investor Relations