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FLSmidth, Dangote Cement terminates O&M contracts on two plants

By on May 8, 2015

Danish firm, FLSmidth, has announced it has reached an agreement with Dangote Cement to end the operation and maintenance collaboration on the Ibese and Obajana plants.

The company said the move was taken due to changes in market conditions.

In November 2013, FLSmidth signed a number of contracts with the Nigerian cement producer Dangote Cement PLC for operation and maintenance of production lines of the cement plants in Nigeria for a period of five years.

“The discontinuation of the O&M contracts will have no impact on FLSmidth’s Group guidance for 2015. However, the demobilisation in Nigeria will have a negative impact on EBITA in the Customer Services division in the first quarter in 2015 of DKK -73m,” a statement from the company said.

“Additionally, the order backlog has been reduced by DKK 671m at the end of Q1 2015 as a consequence of the agreement.”



[Business Day]