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FLSmidth Company Announcements

FLSmidth awarded contract for world's largest cement plant

Message to the Copenhagen Stock Exchange, No. 02-2006

Holcim has awarded a USD 247m contract to FLSmidth for their new plant at Ste. Genevieve, Missouri. Located on the Mississippi River, this greenfield plant will feature the largest single clinker production line anywhere in the world with a capacity of 12,000 metric tons clinker per day or more than 4 million tons clinker per year.
Holcim (US) Inc., a subsidiary of Holcim Ltd. of Switzerland - one of the leading global cement producers - underwent a six year process of reviews and permits involving eight federal and state regulatory agencies. With the use of the most advanced equipment and technology available, emission limits will be among the lowest of any cement plant in the United States and the world.
FLSmidth attributes the success of this contract to its ability to act as a complete partner for the supply of all major machines and auxiliary equipment as well as civil design, project management, and commissioning. The focal point of the plant will be the single pyro process system with 6.6 meter diameter and 93 meter long kiln and the latest generation Multi-Moveable-Cross-Bar cooler rated for 12,000 tons per day. The ILC 5-stage preheater with low NOx and CO calciner will meet the strict environmental and efficiency considerations. Furthermore, the supply of four OK 36-4 Vertical Roller Mills for cement grinding has reinforced this solution as the market standard. Many of FLSmidth's companies and divisions will be represented in the project, including Pfister, MVT, FLSmidth Airtech, FLSmidth Automation and FFE Minerals. The contract covers the process, technology and equipment, but no civil works.
With a strong local presence in the United States, FLSmidth was able to differentiate themselves from their possible competitors and develop a strong relationship with Holcim throughout the discussions for this project. Furthermore, the resources of app. 600 engineering and business professionals available at the US project centre, located in Bethlehem, Pennsylvania, will be supplemented by the project centres located in both Denmark and India in the worldwide execution of this contract.
"We perceive the receipt of this contract to be an honour and a validation of our efforts to continuously strengthen our position as the preferred partner for equipment and services in the cement industry. We are truly appreciative of the opportunity to be involved with such a remarkable undertaking and will put forth our utmost efforts to meet Holcim's expectations", says Christian Jepsen, CEO of FLSmidth Inc.
"The contract further confirms both confidence in FLSmidth's trend-setting technology from leading global cement producers and our expectations of continuing growth in the North American market", says Group CEO Jørgen Huno Rasmussen.
The order will contribute beneficially to FLSmidth's earnings until the plant is commissioned in 2009.
Please address any questions regarding this announcement to Group Chief Executive Officer Jørgen Huno Rasmussen, FLSmidth & Co. A/S at +45 36 18 10 00 or Group Executive Vice President Christian Jepsen at +1 610 264 6989.
Yours faithfully
Torben Seemann Hansen
Corporate Public Relations