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FLSmidth Company Announcements

FLSmidth gains synergy from new cement plant project in South Africa

Message to the Copenhagen Stock Exchange, No. 33-2005

FLSmidth has been awarded a contract for cement plant machinery by Pretoria Portland Cement (PPC-Cement) which is partly owned by Barloworld in South Africa. The contract, with a value of approximately 27m euro or some 200m DKK, is the second major order which FLSmidth has won in South Africa this year.
In addition to FLSmidth's supply contract, the Group's other core business, FFE Minerals, has won an order for installation and supervision of the cement project. The value of this contract is 92m rand, equivalent to about 90m DKK.
Over the coming 20 months FLSmidth is to supply all the machinery for the production line which is an expansion of an existing production facility supplied by FLSmidth to PPC-Cement in 1985. The new line will have a capacity of 3,300 tonnes per day, commensurate with 1 million tonnes per year. The machinery supplies include an ATOX 37.5 raw mill, a complete ROTAX 2 kiln with ILC preheater, an SF Cross-Bar cooler and an ATOX 20 coal mill plus bag filters and electrostatic precipitators. The contract also includes Pfister weighfeeding equipment.
FFE Minerals in South Africa, with a staff of 150 personnel, will be responsible for the mechanical installation work, project management and supervision. The new plant is scheduled to come on stream in the spring of 2008.
The two contracts excellently demonstrate the economies of scale and the synergy effects of the FLSmidth Group's two core activities. "The South African project is a brilliant example of the Group's two major businesses being able to benefit from each others' know-how and local presence around the globe, thus making optimum use of the Group's resources and competencies. It shows that the companies supplement each other both technologically and in other ways," says Group CEO Jørgen Huno Rasmussen.
The orders will contribute beneficially to FLSmidth's and FFE Minerals' earnings until commissioning in 2008, and they highlight the current growth in South Africa's cement market in which FLSmidth only last month signed a 180m DKK contract with Natal Portland Cement Company.
Please address any questions regarding this announcement to Group CEO Jørgen Huno Rasmussen, FLSmidth & Co. A/S, at tel. +45 36 18 18 00. 
Best regards
Torben Seemann Hansen
Corporate Public Relations