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FLSmidth reach agreement to exit O&M contracts in Nigeria

06.05.2015

Company Announcement to the Danish Financial Supervisory Authority No. 07-2015, 6 May 2015

In November 2013, FLSmidth signed a number of contracts with the Nigerian cement producer Dangote Cement PLC for operation and maintenance of production lines at their Ibese and Obajana cement plants in Nigeria for a period of five years (see Company Announcement No. 27-2013, 4 November 2013).

Due to changed market conditions, Dangote Cement and FLSmidth have reached an agreement to end the operation and maintenance collaboration on the two plants.

The discontinuation of the O&M contracts will have no impact on FLSmidth's Group guidance for 2015. However, the demobilisation in Nigeria will have a negative impact on EBITA in the Customer Services division in the first quarter in 2015 of DKK -73m. Additionally, the order backlog has been reduced by DKK 671m at the end of Q1 2015 as a consequence of the agreement. 

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Please address any questions regarding this announcement to Group Chief Executive Officer Thomas Schulz, 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