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FLSmidth Company Announcements

FLSmidth to modernise Uruguayan cement plant

28.05.2010

Company Announcement to the Danish Financial Supervisory Authority No. 20-2010, 28 May 2010

FLSmidth has signed a contract worth Euros 32.1m (approximately DKK 239m) with Administración Nacional De Combustibles, Alcohol y Portland (ANCAP), a state-owned Uruguayan company, to supply equipment and supervision for upgrading the company's Paysandú cement plant whose first production line was supplied by FLSmidth in 1972. The plant is located in the Paysandú province, 400 km northwest of Montevideo near the Argentinean border.

 

This order is a continuation of the Paysandú upgrade which FLSmidth earlier has supplied equipment for (see Company Announcement no. 12-2009).

 

The order entails upgrading the existing kiln 2 from a capacity of 750 tonnes per day to a future capacity of 1,800 tonnes per day. The upgrading of the kiln will lead to significant environmental improvements and more energy-efficient cement production.

 

The equipment to be supplied for the modernisation programme comprises a raw material crushing unit, a raw material storage, feed silos, a raw mill feeding system, a raw grinding unit, silo equipment, an ILC preheater, modification of the existing kiln, a clinker cooler, a clinker conveying system and electrical and control equipment.

 

"We are happy to continue the successful cooperation with ANCAP, which dates back to 1956, contributing to the quality assurance and modernisation of their cement production. The order confirms our close relationship with ANCAP and underlines FLSmidth's value proposition as a One Source provider of products and services as well as our strong market position in the Uruguayan cement industry, having supplied by far most of its manufacturing equipment," Group CEO Jørgen Huno Rasmussen says.

 

The order will contribute beneficially to FLSmidth's earnings until in mid 2012.

 

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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 further information about FLSmidth, please visit www.flsmidth.com.

  

Yours faithfully

Pernille Friis Andersen
Corporate Communications & Investor Relations