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FLSmidth Company Announcements

F.L.Smidth to supply an additional production line to M'Sila in Algeria

In the presence of Algerian governmental representatives F.L.Smidth A/S has signed a contract with the first privately owned company in the cement sector in Algeria, Algerian Cement Company (ACC). The order includes the supply of machinery and equipment for an additional 5,000 tonnes per day (tpd) cement production line to be established at the company's plant at M'Sila, some 240 km southeast of the capital of Algiers. The total contract value amounts to EURO 56m corresponding to just over DKK 410m.

F.L.Smidth is in the process of completing a similar cement production line at the M'Sila plant (cf. Stock Exchange Announcement no 12-2002). This production line is currently being run-in and the handing over of the plant to the customer is expected to take place during the spring of 2004. The new production line will essentially be identical to the newly established line and will be based on the same calculations and drawings.

Most of the machinery and equipment will be delivered during 2004 with a view to the production line coming on stream already during the summer of 2005. The project will be implemented in co-operation with Orascom, the Egyptian building contractor, which was also in charge of the construction and erection of the first production line.

The contract awarded to F.L.Smidth includes the supply of an ATOX raw mill including a MAAG gear; a pyroprocessing system complete with preheater, calciner and clinker cooler and two UMS cement mills. In addition, F.L.Smidth Materials Handling will supply silos and equipment, Ventomatic will provide four complete cement packing lines and F.L.Smidth Airtech will deliver electrostatic precipitators.

Jørgen Huno Rasmussen, CEO of F.L.Smidth, comments:
"I see it as a quality stamp that ACC has opted for purchasing an additional production line from F.L.Smidth for their plant in M'Sila. The newly established production line has met the agreed time schedules and we have had a very positive business relationship with the building contractor Orascom in connection with building the plant. In addition, the new order reinforces our confidence that standardisation and fast delivery of our products will further strengthen F.L.Smidth's position as the preferred supplier in the market.

The contract will contribute positively to the FLS Group's earnings for 2004-2005.

FLS Industries A/S
Corporate Public Relations