F.L.Smidth success in China

Until now this year F.L.Smidth has signed contracts for eight vertical mills with Chinese cement manufacturers at a total value of approximately DKK 155m (EUR 21m). With the receipt of these orders F.L.Smidth has consolidated its position as a leading supplier to China's cement industry.

The contracts were negotiated by F.L.Smidth's sales office in China. F.L.Smidth in Copenhagen will design and supply the main components, whilst a large part of the machinery manufacture will take place locally. The eight mills are scheduled for delivery by the end of the first quarter of 2004.

The orders do not affect the FLS Industries earnings forecast for 2003.

-It is extremely gratifying for F.L.Smidth to have strengthened its position in the expanding Chinese market which is currently seeing comprehensive modernisation of the cement industry and the construction of several new plants, says Mr Frank Gad, CEO, F.L.Smidth.

The contracts for the eight vertical mills were signed with six different cement manufacturers and include the following equipment.

- 2 OK mills for Dongjun Cement Co. in the Yunnan province. This is F.L.Smidth's first order for OK vertical mills in China and they will be among the first cement grinding units of this type to be installed in the Chinese cement industry.

- 2 ATOX 50 raw mills for Red Lion Cement Co.'s two 5,000 tonnes per day production lines in the Zhejiang province

- 1 ATOX 50 raw mill for Liyang Cement Co.'s 5,000 tonnes per day production line in the Jiangsu province

- 3 ATOX raw mills for 2,500 tonnes per day production facilities, one for each of the following: Nanyang Cement Co. in the Henan province, Kaiyuan Cement Co. in the Yunnan province and Shuicheng Cement Co. in the Guizhou province

The orders listed above include six planetary gear units to be supplied by F.L.Smidth's subsidiary MAAG Gear AG.

FLS Industries A/S
Corporate Public Relations