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FLSmidth Company Announcements

F.L.Smidth to build Pakistan's largest cement production line

F.L.Smidth has signed a contract worth EUR 60m, corresponding to more than DKK 450m, for the supply of a new plant to D.G.Khan Cement Co. Ltd., which is owned by one of Pakistan's largest industrial groups - Nishat Group. The new production line will be Pakistan's hitherto largest and will have a capacity of 6,700 tonnes of cement clinker per day.

The F.L.Smidth machinery and equipment will be delivered over the next 20 months, and the order will be taken to income in step with the equipment deliveries, which means until commissioning scheduled for the beginning of 2007.

The scope of the order is a complete production line including an ATOX coal mill, an ATOX raw mill and two OK vertical mills, incidentally the first OK mills to be installed at a Pakistani cement plant. The scope also includes a complete pyroprocessing system consisting of preheater and kiln and the world's hitherto largest SF Cross-Bar Cooler. F.L.Smidth's specialist product companies are also involved with F.L.Smidth Materials Handling supplying a complete raw material store, F.L.Smidth Airtech four electrostatic precipitators, Ventomatic six complete packing lines, MAAG Gear four gear units and F.L.Smidth Automation a complete control system and laboratory. F.L.Smidth will also supervise the erection and commissioning of the plant and provide training for the staff.

This selection of machinery and equipment provides D.G.Khan Cement Co. with a technology that will reduce both energy consumption and emission levels to a minimum, whilst maintaining the highest international environmental standards.

"F.L.Smidth has been active in Pakistan for more than 90 years, and the signing of this contract for Pakistan's hitherto largest production line makes us well placed in the Pakistani market which is seeing strong growth in cement consumption," comments Mr Jørgen Huno Rasmussen, Group CEO.

The order will not affect the previously announced earnings projections for this year, but it will contribute positively to earnings until the commissioning.

FLS Industries A/S
Corporate Public Relations