FLSmidth has signed a contract with Arabian Cement Company (ACC) for operation and maintenance of the production lines at their cement plant located near the city of Suez in Egypt.
The parties have agreed not to disclose the value of the contract which covers five years of operation and maintenance of two production lines with a capacity of 6,000 tonnes per day each. FLSmidth has been operating and maintaining the two lines since 2008 and 2010, respectively. Both lines were built by FLSmidth (see earlier announcement here).
The scope of supply includes operation and maintenance of two clinker production lines, one coal mill, two alternative fuel handling and dosing installations, four cement mills and six packing lines. The operation and maintenance of the mills and packing lines is an addition to the current scope.
"Arabian Cement Company was our first operation and maintenance customer and we have supplied operation and maintenance services at their plant since 2008. The demonstrated performance over the past nearly 8 years was the main motive for ACC to expand and continue the cooperation with us. The prolongation of the O&M contract illustrates the strength of our productivity enhancing 'Design-Build-Operate'-model, where we offer to design, build and operate customers' plants" - Per Mejnert Kristensen, Group Executive Vice President, Cement Division.
The contract will contribute beneficially to FLSmidth's earnings until the contract expires in early 2021.