In November 2013, FLSmidth signed a number of contracts with the Nigerian cement producer Dangote Cement for operation and maintenance of production lines at their Ibese and Obajana cement plants in Nigeria for a period of five years.
Due to changed market conditions, Dangote Cement and FLSmidth have reached an agreement to end the operation and maintenance collaboration on the two plants.
The discontinuation of the O&M contracts will have no impact on FLSmidth's Group guidance for 2015.
However,
May 7, 2015
Read time: 1 min
In November 2013, 7451 FLSmidth signed a number of contracts with the Nigerian cement producer 7635 Dangote Cement for operation and maintenance of production lines at their Ibese and Obajana cement plants in Nigeria for a period of five years.
Due to changed market conditions, Dangote Cement and FLSmidth have reached an agreement to end the operation and maintenance collaboration on the two plants.
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 -73 million (€9.8 million). Additionally, the order backlog has been reduced by DKK 671 million (€90 million) at the end of Q1 2015 as a consequence of the agreement.
