FLSmidth has signed a contract with Chinese cement producer Conch to supply a 12,000 tonnes per day cement kiln for the Tongling plant in the Anhui province in eastern China.
With an annual production capacity in excess of 100 million tonnes cement, Conch is the largest cement producer in China. The Tongling plant's two existing kilns, each with a capacity of 10,000 tonnes per day, were delivered by FLSmidth in 2002-03. FLSmidth has not since supplied cement kilns to Chinese customers.
The new 12,000 tonnes per day cement kiln will have the maximum capacity available on the world market today, and the project is benefitting from the expertise and knowledge recently gained by FLSmidth from the installation of a similar capacity pyroprocessing line at Holcim Ste. Genevieve on the banks of the Mississippi, USA.
Parallel with the Conch contract, FLSmidth is embarking on a long-term strategy to strengthen its presence and competitive edge on the Chinese market.
The long-term goal is to become a competitive supplier in China of cement plants and selected types of minerals machinery and services. Based on a Chinese sales organisation and Chinese production facilities, FLSmidth will therefore launch equipment designed for the Chinese market.
FLSmidth has been permanently represented in China since establishing an office in Peking in 1912. Today it has a sales office in Beijing and an approximately 13,000 square metre manufacturing plant in Qingdao that produces both cement and minerals equipment. To handle the increasing production for international projects and the stronger focus on the local Chinese market, the Qingdao production facility will be expanded to double its present size in 2010.
"We are determined to increase our competitiveness in China in terms of major cement plant components and selected types of minerals equipment and services, and the Conch order matches this ambition perfectly," Group CEO Jørgen Huno Rasmussen comments.
The Conch contract will contribute beneficially to FLSmidth's earnings until the kiln is commissioned by mid 2011.
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