FLSmidth wins second multimillion contract with Libyan customer in only three years
Message to the Copenhagen Stock Exchange no. 17 - 2006
FLSmidth has signed a 144m euro contract (some 1 billion Danish kroner) with Arab Union Contracting Company (AUCC) in Libya for a new cement production line with a capacity of 5000 tonnes cement clinker per day.
The production line is an expansion of the existing cement plant built by FLSmidth from 2002 to 2005 (see Stock Exchange announcement No. 31 - 2002), which came on-stream in September 2005, three months ahead of schedule.
The new production line is 20 per cent larger than the existing one and is expected to be ready for operation in the summer of 2008.
FLSmidth is to supply all the machinery and all the auxiliary equipment. The scope of supply includes an ATOX 40 raw mill with a MAAG gear unit, a complete ILC 3-support kiln with preheater and an SF Cross-Bar cooler in addition to two UMS cement mills, electrostatic precipitators and automation equipment. The contract also includes civil design, installation work and technical assistance plus three complete Ventomatic packing lines. To provide steel structures and installation work, FLSmidth has chosen its long standing business partner, Orascom.
"Already before the first 1.2bn DKK production line was commissioned, AUCC began negotiating with us to build another line of a total value of DKK 1bn. This decision represents in our view a clear recognition of FLSmidth technology and knowhow. The experience gained from the recently completed plant, which was inaugurated three months ahead of schedule, also shows that our new tight project management concept is proving successful for both customers and FLSmidth" says Mr Jørgen Huno Rasmussen, Group CEO.
The order will contribute positively to FLSmidth's earnings until the plant is commissioned in 2008.
Please address any questions regarding this announcement to Mr Jørgen Huno Rasmussen, Group CEO, FLSmidth & Co. A/S at tel. +45 36 18 10 00.
Torben Seemann Hansen
Corporate Public Relations