F.L.Smidth wins contracts for the supply of key equipment and technology for two cement production lines to Anhui Conch Cement Co. and a fly ash handling system for the Wai Gao Qiao Power Plant totalling about DKK 220m or EUR 30m.
F.L.Smidth has received an order from Anhui Conch Cement Co. (Conch) for supply of key equipment and technology for two new 10,000 tonnes per day (tpd) cement production lines. The total value of the order to F.L.Smidth is approximately DKK 170m or about EUR 23m.
The order comprises the supply of two 5-stage ILC preheaters, two 10,000 tpd rotary kilns and five ATOX 50 raw mills, each with a 3,800 kW planetary gear supplied by MAAG Gear AG. The two 10,000 tpd production lines will be the largest in China, with a capacity similar to the world's largest cement production lines - previously supplied by F.L.Smidth to the Thai cement industry. F.L.Smidth thus considers this a very important order and a milestone in the Chinese cement industry. Furthermore, it confirms F.L.Smidth's position as the sole supplier of very large kiln systems to the global cement industry.
Conch is the largest cement producer in China and the company is rapidly expanding its clinker production capacity from approximately 13 million tonnes per year (tpy) presently to a projected 40 millon tpy within the next 4 - 5 years. This development will take Conch to a position among the ten largest cement producers worldwide. Already listed on the Hong Kong Stock Exchange, Conch was recently also listed on the Shanghai Stock Exchange by issuing shares worth approximately USD 100m.
F.L.Smidth has been supplying cement machinery to the Chinese cement industry since 1906. In the mid- 90's F.L.Smidth supplied a 4,000 tpd production line to the Conch' Tongling plant in Anhui Province. The successful implementation of this project as well as a continued good relationship between the two companies have subsequently led to a number of orders from Conch. Last year F.L. Smidth and Conch signed a contract for supply of two ATOX 50 raw mills and at the beginning of this year an order for another five ATOX 50 raw mills was placed.
Engineering and manufacture of the equipment to be supplied under this contract will commence immediately and delivery of the first parts will take place within 10 months. Start-up of the first of the two production lines is expected to take place at the end of next year.
Fly ash handling contract
Another F.L.Smidth Group company - MÖLLER Materials Handling - has received an order for a complete fly ash handling system for the Wai Gao Qiao Power Plant, Phase II, in the area of Shanghai, the biggest coal-fired power plant ever built in China with a capacity of 2 x 900 MWel. The project is being financed by the World Bank and marks an important reference for MÖLLER in the power industry.
The order value for MÖLLER amounts to app. DKK 50m or EUR 7m and the scope of the supply (partly local) of 104 pressure vessels for 6 TURBUFLOW® conveying pipelines (1000 m per line), 6 sets of ash silo equipment, 6 sets of conveying air compressors and a complete set of electrical equipment including MCC, cabling and PLC. Shipment will take place in February 2003 and commissioning is to start before the end of 2003.
The two orders will not affect the most recently announced 2002 earnings forecast for FLS Industries.
FLS Industries A/S
Corporate Public Relation