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FLSmidth breakthrough in Russia

20.09.2007
Company Announcement no. 21-2007, 20 September 2007

FLSmidth has signed a contract worth approximately DDK 1.2bn (165m euro) with Russia's leading cement producer Eurocement Group for its first modern production line.
FLSmidth is to supply machinery and equipment for a new energy optimised cement production line based on state-of-the-art environmentally friendly equipment. The new line with a capacity of 6,000 tonnes per day will replace the existing line at Eurocement's plant near Podgorensky in the Voronesh district, 600 kilometres southeast of Moscow.
 
The contract comprises a complete production line including a crushing plant, raw materiale stores, two hammer dryer crushers, raw meal silos, a complete ILC three-support kiln with two string preheater and SF Cross-Bar cooler, two UMS cement mills with gears from FLSmidth MAAG Gear and four cement silos as well as a complete electrical equipment package. Training of the plant's personnel is also included in the contract, but local construction work is not.
 
In addition, a number of FLSmidth's product companies will contribute with technology, including storage equipment from FLSmidth MVT, dosing equipment from FLSmidth Pfister, a control system from FLSmidth Automation and filters from FLSmidth Airtech. FLSmidth Ventomatic will supply one packing line as well as equipment for bulk loading onto trucks and rail cars.
 
Eurocement produces with its existing 13 plants one third of Russia's total cement production. Eurocement also has two cement plants in the Ukraine and one in Uzbekistan.
 
"This contract is strategically very important to FLSmidth, as it first of all has been made with the largest cement producer on the Russian market; a market where we expect growing activity in the coming years. Russia's GDP rose some 6 to 7 percent in 2006, and this has lead to increased cement consumption. This increase in consumption combined with a pressing need for modernisation of the older production facilities makes the Russian cement market very promising," comments Mr Jørgen Huno Rasmussen, Group CEO.
 
The order will contribute positively to FLSmidth's earnings until the cement production line is commissioned during the first half of 2010.
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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 10 00.  
 
For more information about FLSmidth, please visit www.flsmidth.com.


 
Yours faithfully

Torben Seemann Hansen
Corporate Public Relations