FLSmidth and its companies have won a number of contracts with Dangote Cement PLC in Nigeria. Dangote Cement PLC is the largest cement producer in Nigeria, with over 60% of the market share and a production capacity of around 50 million tpa. The company will carry out operation and maintenance of certain product lines at Dangote’s cement plants for a period of five years. The value of the contracts has remained undisclosed. FLSmidth has worked previously with Dangote, supplying two of the four production lines at Dangote’s Obajana plant.
President and CEO of the Dangote Group, Alhaji Aliko Dangote said of the new partnership, "After having decided to have an external partner operate and maintain our cement plants the main criteria has been to find a service provider who can provide ongoing operational reliability. And this is something we believe that FLSmidth can deliver."
The contracts are the largest operation and maintenance contracts awarded to FLSmidth to date. The contracts are for the operation and maintenance of the plant from crusher to packaging, including a full upgrade of the automatic control systems. The company’s work at one of the plants will start in six months time, and work on other production lines will follow.
Group Executive Vice President Bjarne Moltke Hansen commented, "These orders underline FLSmidth's abilities and growing role as operator of cement plants. In choosing FLSmidth for the operation and maintenance of their cement plants the Dangote Group placed great emphasis on our focus on the use of local manpower and training, including our proven ability to train large numbers of staff through FLSmidth Institute. The current contracts include a workforce of around 1000 people."
The contracts will contribute beneficially to FLSmidth’s earnings until 2018. The order intake will be recognised on a 12 month rolling basis throughout the contract period.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.worldcement.com/africa-middle-east/04112013/flsmidth_wins_operation_and_maintenance_contracts_for_cement_plants_in_nigeria_376/