FFE Minerals, which is a company in the F.L.Smidth Group, has won a significant contract for supply of two lime reburning kilns including auxiliary equipment for a pulp mill in Southern China. It is the largest order of its kind ever received - having been placed in an otherwise squeezed market.
The contract value is around DKK 125m, corresponding to EURO 17m. Over the next 12 months machinery and equipment will be supplied, and the plant is expected to come on stream during the summer of 2004. As the major part of the contract value will be taken to income in 2004, the contract will not affect FLS Industries'earnings forecast for 2003.
The contract, which was won against competition from a Finnish company, includes two rotary kilns - each with a productive capacity of 700 tonnes burnt lime per day (tpd). Each kiln has a diameter of 4.55m and a length of 105m. The auxiliary equipment includes two preheaters, two burners and two coolers. In addition, F.L.Smidth Airtech will be supplying two electrostatic precipitators, and F.L.Smidth will be responsible for the electrical supply and instrumentation. The contract also includes training and supervision.
The market for technology, machinery and equipment for the pulp and paper industry both in South East Asia and internationally has been under pressure due to low and highly fluctuating prices on raw materials. The demand for packaging and paper articles, however, has been steadily increasing and there seems to be a potentially large market for FFE Minerals' technology, in particular in South China where conversion from small to large plants is being considered in the longer term.
FLS Industries A/S
Corporate Public Relations