FL Smidth to modernise and expand Iranian cement plant

FLSmidth has won a contract to modernise and expand a cement production line near the town of Kermanshar, some 450 km southwest of the Iranian capital, Tehran. The customer is Gharb Cement Industries, part of the Fars & Khuzestan Cement Co Group, which is Iran’s largest cement producer. The total value of the contract is 14.6m euros or 108m Danish kroner.

After the modernisation and expansion of the plant, Gharb Cement Industries will have doubled its production capacity to 4000tpd. Machinery and equipment will be delivered by FLSmidth over the next 24 months, and the production line is expected to come on stream in November 2005.

The order comprises upgrading of the raw material store, a new ATOX raw mill with auxiliary equipment, a UMS cement mill including auxiliary equipment, and upgrading of the existing pyro system - which includes installation of an SF Cross-Bar cooler.

The total order value is inclusive agreements with FLSmidth Automation and FLSmidth Airtech, the former being responsible for modernisation of the existing control systems and the latter to supply new electrostatic precipitators.

The order reflects the strong cooperation between FLSmidth Group and the Iranian cement industry - a relationship that dates back more than 70 years. This is the fourth major contract awarded to FLSmidth Group in Iran this year, raising the current year’s total order volume in this country to an amount in excess of DKK 900m.

The order will not affect this year’s previously announced earnings forecast for the FLS Group, but will have a positive impact on earnings in 2004 and 2005.