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FLSmidth Company Announcements

FLSmidth to supply equipment for new cement production line in Russia


Company Announcement to the Danish Financial Supervisory Authority No. 36-2010, 10 December 2010

FLSmidth has received a contract worth approximately EUR 30m (approximately DKK 220m) from Russian Open Joint Stock Company Sebryakov Cement for the supply of equipment for their new cement production line. The plant is located in Mihkailovka city, approximately 180 km North of Volgograd.


The order is based on an ongoing collaboration between Sebryakov Cement and FLSmidth which goes back to 2005 when the contract for a new, and until now the biggest cement mill in Russia, was signed.


The new production line will substitute the existing wet line, reducing energy consumption significantly and increasing production with 1 million tons of clinker per year.  


The contract includes supply of the process equipment and technology, starting from intake of the raw material with a combined crusher, material handling, new raw material storages, modern kiln with dry crusher and 3-stage preheater, clinker cooler, clinker transport to existing storage as well as upgrade of the existing electrostatic precipitator to ensure the lowest possible dust emission. Automation- and control equipment will also be supplied for the new production line.   


"Russia is a well-known market to FLSmidth and we have a strong local presence in the country. We believe that Russia as the 5th largest cement consumer in the world holds a large potential. Most of the existing capacity (~80%) is technologically outdated and based on old process technology. Russian cement producers are actively engaging in bringing more modern capacity on stream, supported by the government," Group CEO Jørgen Huno Rasmussen comments.


The order will contribute beneficially to FLSmidth's earnings until start-up of the plant in the first quarter of 2013.





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.


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Yours faithfully

Pernille Friis Andersen
Corporate Communications & Investor Relations