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Danish firm bags Egypt plant deal

FLSmidth signs $52.20mn five-year contract with Arabian Cement to operate and maintain cement plant.

(Getty Images
(Getty Images

Danish engineering group FLSmidth has signed a $52.20 million contract to operate and maintain a cement plant in Egypt.

The plant is owned by Arabian Cement Company (ACC) and is also being built by FLSmidth.

Under the contract, FLSmidth will operate and maintain the plant for five years starting from its inauguration in early 2008.

 

The company will be responsible for recruiting and training around 150 local staff to work at the plant as well as for maintaining a stock of spare parts that will guarantee maximum operational stability.

The aim is also to ensure a high level of production efficiency through continuous upgrading of the production process and ongoing training of the staff.

"With the signing of this contract, FLSmidth's relationship with ACC has shown the way for a new form of ongoing partnership which we expect to have a positive influence on the future development of our business and the cement industry as a whole," said FLSmidth's group CEO, Jørgen Huno Rasmussen.

FLSmidth also won a design and equipment procurement contract from Gulf Cement Company in July for its new plant in Doha, Qatar.

The contract involved the supply of all equipment, machinery and technology for the plant, which will have a capacity to generate 5,000 tonnes of cement a day.

The company also won a $154 million engineering, procurement and construction contract in July for Syrian Cement Company's new 7,500 tonne a day plant near Damascus.

"It is a positive sign that the Middle East continues to show a high level of activity even after several years of capacity expansion in the cement industry," added Rasmussen.

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