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2015-10-01

FLSmidth: FLSmidth to support Heidelberg with new service agreement concept

PRESS RELEASE

FLSmidth has agreed with Heidelberg on a one year service agreement contract
to support their cement plant in Kjøpsvik in Norway.

The service agreement between the second largest cement producer in the world,
Heidelberg, and FLSmidth is based on a partnership between FLSmidth's global
team of specialists and the Heidelberg Kjøpsvik operators and process
engineers. The FLSmidth team will real-time monitor and diagnose the plant
and advise the Kjøpsvik process operators and process engineers on
improvements, increasing availability and reducing operating costs, while at
the same time ensuring the plant will maximize its performance.

"Optimising equipment performance is difficult without the access to a wide
range of specialists. It is not easy for customers with plants often in
remote corners of the world to recruit specialists. We have an experienced
global specialist team ready to support the customers at all hours of the day
anywhere in the world,
" says Vice President, Global R&D, FLSmidth Customer Services, Skage Hem.

Service is increasingly important for FLSmidth and a growing business; in the
last quarter alone service business across FLSmidth grew 24% compared with
the same quarter last year. Although global growth has slowed down, the
equipment of many of our existing customers still needs to be maintained and
optimised in order to increase the productivity of the plant. With more than
90% of the lifecycle cost of cement plants being OPEX cost, service
agreements are an area of continued growth potential for FLSmidth. And the
gap between the best and the worst run processes point to the fact that there
is a valuable improvement potential for operating the plants better.

"Customers are increasingly looking to us to support them in getting the most
out of their production; we know the equipment, and how to maintain and run
it to increase availability and performance,
" says Skage Hem and continues: "Knowledge-based service is about ensuring
that we help customers increase
their productivity; even a minor improvement in productivity results in
substantial financial gains for the customer.
"

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Please address any questions regarding this announcement to Vice President,
Global R&D, FLSmidth Customer Services, Skage Hem, at +45 36 18 10 87.

For further information about FLSmidth, please visitwww.flsmidth.com.

Link to PDF version
http://hugin.info/2106/R/1955643/712137.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: FLSmidth via Globenewswire

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