FLSmidth wins Al Khalij Cement deal


Updated Mon, 30 Dec 2013 00:00:00 GMT

DOHA: Global Company FLSmidth has received an order worth DKK515m for Qatari cement producer Al Khalij Cement covering supply of a complete cement production line for Al Khalij’s plant in Umm Bab, east of Doha. 

The production line will be a duplicate of the existing line, which was supplied by FLSmidth in 2007. The order covers all main equipment for the production line: conveyor transport systems, mills, complete pyro line, electrical and automation systems as well as filters, FLSmidth said in a company announcement to the Danish Financial Authority. 

The production line is being supplied in cooperation with CNBM International Engineering, which is part of China National Building Materials (CNBM) — the largest building materials group in China and a global supplier of integrated EPC (engineering, procurement and construction) projects. FLSmidth’s role in the cooperation is to engineer the plant and supply the main equipment. CNBM is the turnkey contractor and received the order from Al Khalij Cement in cooperation with FLSmidth. 

“The FLSmidth and CNBM offering combines environmentally cutting-edge process know-how, engineering and equipment supply from FLSmidth with a cost efficient EPC contract. Together, we can offer the customer the best of two worlds,” President of the Cement Division Per Mejnert Kristensen commented.

The order will be booked by the Cement division and contribute to FLSmidth’s earnings until mid 2015.

FLSmidth is expected to sign a separate contract with Qatar National Cement Company (QNCC)   to launch QNCC’s new plant-Plant 5 next month. It has already signed a Letter of Intent (LoI) with FLSmidth early this month.

QNCC expects it will have to invest QR1.19bn to complete the facility capable of producing 7,500 tons of clinker per day. The new facility will be operational within 24 months after the signing of the contract. With the launch of the new plant, QNCC’s total production capacity will jump to 18,500 tonne clinker per day. Cement grinding capacity is expected to reach about 22,000 tonnes  per day. 

Heavy infrastructure spending by Qatar government is expected to boost the country’s cement demand in short-term to long-term. Qatar’s total expenditure during 2013-14 has been set at $57.8bn, up 18 percent from $49bn set for the previous year. The recent BMI estimates that Qatar is expected to spend $140-150bn on infrastructure over the next decade.

Headquartered in Copenhagen, FLSmidth is a leading engineering company listed on Nasdaq OMX Exchange Copenhagen.