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FLSmidth Company Announcements

FLSmidth signs Brazilian contract for six vertical mills

28.02.2008
Company Announcement to the Danish Financial Supervisory Authority No. 9-2008, 28 February 2008

FLSmidth has signed a mill contract with Votorantim Cimentos, Ltda, headquartered in São Paulo, Brazil. By offering a proposal that demonstrated both superior technical value and comprehensive support, FLSmidth was awarded the contract for approximately USD 40 million (approximately DKK 200 million).
The mills will be installed at three different cement plants in Brazil and is a part of Votorantim's recently announced investment of approximately USD 2 billion in new production facilities. 
 
FLSmidth's US project centre, based in Bethlehem, Pennsylvania in conjunction with FLSmidth's Brazilian office are responsible for the projects. The scope of supply includes two ATOX mills for raw grinding, four OK cement mills and associated spare parts such as a gearbox from FLSmidth's subsidiary MAAG Gear.
 
The Votorantim group, who is among the ten largest cement producers in the world, is one of the largest private corporations in Brazil in the fields of cement, minerals and metals. Votorantim controls about 40% of the Brazilian cement production and an important part of the ready-mix operations. Internationally, the Votorantim group controls a number of cement production facilities in the great lakes region and in Florida US as well as Canada and Bolivia.
 
"Our strong local presence in the Americas and state-of-the-art milling technology that minimises power consumption and other operating costs helped us differentiate ourselves from possible competitors in the negotiations for this contract," Group CEO Jørgen Huno Rasmussen comments.
 
The order will contribute beneficially to FLSmidth's earnings until the mills are installed throughout 2009.
 
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Please address any questions regarding this announcement to Group Chief Executive Officer
Jørgen Huno Rasmussen, FLSmidth & Co. A/S, on +45 36 18 18 00.  
 
For more information about FLSmidth, please visit www.flsmidth.com.
 

Yours faithfully
Pernille Friis Andersen  
Corporate Communications & Investor Relations