Company Announcement to the Danish Financial Supervisory Authority No. 04-2010, 11 March 2010
FLSmidth has received a contract from Angolan Fabrica De Cimento Do Kwanza-Sul S.A. (FCKS) for operation and maintenance of their 4,200 tonnes per day cement plant. The plant will be located in the Kwanza-Sul province, approximately 300 km. south of the capital of Angola.
The cement plant is being designed and supplied by FLSmidth.
The scope of the supply includes complete staffing of the plant for operation and maintenance of the equipment as well as sourcing and inventory control of spare parts and lubricants. FLSmidth will also establish a training centre in Angola in close cooperation with the Angolan educational system. The centre will provide training of the local workforce to enhance their competencies in areas such as mechanical, electrical, process and safety skills.
The objective of the operation and maintenance contract is to ensure a high production level of the plant as well as ensuring an ongoing knowledge transfer and training of the local staff.
The operation and maintenance activities will over a period of five years amount to 154m Euros (DKK 1,1bn) for the FLSmidth Group.
"Angola is a well known market to FLSmidth and the country is undertaking large investments in developing its infrastructure. This contract further strengthens FLSmidth's position in Africa and illustrates the value of our operation and maintenance activities to the customers," Group CEO Jørgen Huno Rasmussen comments.
The order will contribute beneficially to FLSmidth's earnings until 2017.
-------------------------------------
Please address any questions regarding this announcement to Group Executive Vice President Bjarne Moltke Hansen, FLSmidth & Co. A/S at +45 36 18 18 00.
For further information about FLSmidth, please visit www.flsmidth.com.
Yours faithfully
Pernille Friis Andersen
Corporate Communications & Investor Relations