FLSmidth rise on Chinese factory closings

FLSmidth rise on Chinese factory closings
Published: 11 August 2010

Shares in FLSmidth rise 2.4 per cent, outperforming the European cement and materials index, after news China ordered more than 2,000 firms, including 762 in the cement industry, to shut old capacity.

FLSmidth, which supplies cement and mineral processing lines, would be able to replace most of the halted cement plants, Sydbank analyst Jacob Pedersen said: "FLSmidth hasn’t been selling a great deal in China in the past, but said in late 2009 they wanted a bigger slice of the Chinese market, and this supports that goal."

Plants targeted for closure were either highly polluting or energy-wasting, or did not meet safety requirements, Chinese state media said.

"FLSmidth can supply modern cement plants using considerable less energy than the technologies currently employed by the Chinese," Pedersen said.