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FLSmidth wins modernisation project in the US

04.03.2008
Company Announcement to the Danish Financial Supervisory Authority No. 10-2008, 4 March 2008

FLSmidth is to supply equipment with a value of approximately USD 75 million (approx. DKK 375m) for the modernisation and expansion of Ash Grove Cement Company's Foreman plant. The upgraded plant will produce 1.7 million tonnes of cement per year, resulting in a net increase in capacity of nearly 700,000 tonnes. The new facility will be located in connection with the existing plant in Arkansas, United States, which was constructed in 1958. Ash Grove Cement Company is North America's largest U.S.-owned cement manufacturer.
The Foreman plant's three existing wet-process kilns will be replaced by the most advanced pyro-processing technology available in the form of a ROTAX-2 kiln, an ILC 5-stage preheater with low NOx calciner and a Multi-Movable Cross-bar Cooler. 
 
As a result, fuel consumption will be reduced by an estimated 50% and emission levels will be minimised whilst production capacity will increase 70%. Furthermore, the new grinding technologies to be installed at the plant including an FRM raw mill, an ATOX coal mill and an OK finish grinding mill will ensure high operational reliability and significant energy savings.
 
Many FLSmidth companies and divisions will contribute to the project. FLSmidth Airtech will supply process and nuisance dust collectors, FLSmidth Pfister will provide pulverised fuel weighfeeders, FLSmidth MAAG Gear will supply gear units for the vertical grinding mills, FLSmidth Airloq will supply gas analysing systems and FLSmidth Automation will supply the plant Expert Control and Supervision (ECS) system along with the QCX quality control system. Raw material stacking and reclaiming equipment is also included in the contract as is training of the staff, project management and commissioning of the plant.
 
"The ambitious modernisation project will provide Ash Grove with a state-of-the-art cement plant featuring the latest environmentally optimised and energy-saving technologies," Group CEO Jørgen Huno Rasmussen comments.    
 
A pre-engineering agreement for this project was signed and executed in 2007 and the project is now well on its way.
 
The order will contribute beneficially to FLSmidth's earnings until the plant is commissioned in late 2009.
 
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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 18 00.
 
For more information about FLSmidth, please visit www.flsmidth.com.
 
Yours faithfully,
Pernille Friis Andersen
Corporate Communications & Investor Relation