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FLSmidth Company Announcements

FLSmidth sells licence for pulp and paper industry technology



In accordance with its heightened focus on core business areas, FLSmidth has decided to divest, by means of a licence agreement, the capital sales of lime kilns and recausticising equipment for use in white liquor plants in the pulp and paper industry. The business is divested to its long-standing customer, Metso Paper Sweden AB.

Since the technology will continue to be used by FLSmidth for other applications than white liquor plants, FLSmidth has signed a licence agreement with Metso Paper Sweden AB for FLSmidth's technology.

The licence is perpetual and exclusive also in relation to FLSmidth. FLSmidth will, however, continue certain after-market activities, including parts sales in relation to the pulp and paper industry and white liquor plants. FLSmidth will furthermore continue to support its existing pulp and paper contracts as originally structured, and FLSmidth will continue to sell its other capital equipment to the pulp and paper industry in other applications, such as water and wastewater treatment.

In a transitional period, FLSmidth will assist and support in transferring the technology.

As part of the divestiture, Metso will offer employment to 15-25 FLSmidth employees who have key competencies in applying the technology for white liquor plants.

"Metso has for many years used FLSmidth as supplier of this equipment and has expressed an interest in acquiring the technology from us. And since the pulp and paper industry is not a key industry for FLSmidth, we find it appropriate to licence our white liquor plant technology and exit the capital equipment activities. This will enable us to focus even closer on our key industries and customers," Group Executive Vice President Peter Flanagan comments.

The transaction is subject to certain conditions and is planned to become effective in June or July 2013.

Please address any questions regarding this announcement to Group Executive Vice President Peter Flanagan, FLSmidth & Co. A/S at +45 36 18 18 00.

For further information about FLSmidth, please visit

Yours faithfully

Pernille Friis Andersen
Corporate Communications & Investor Relations