October 14, 2009 / 4:26 PM / 10 years ago

UPDATE 1-FLSmidth wins 130 mln euro Libya cement plant order

* Company gets EUR 130 mln Libyan order for cement plant

* Says order to contribute positively to earnings to 2011

* CEO says company could also win deal to operate the plant

* Shares end up 5 pct in a positive market

(Adds details, quotes; updates share price)

COPENHAGEN, Oct 14 (Reuters) - Danish engineering group FLSmidth (FLS.CO) has won a cement plant order worth about 130 million euros ($194 million) in Libya, the company said on Wednesday.

The plant to be built for Libya’s Al Hadena National Company near Nalout, some 280 kilometres southwest of the capital Tripoli, will have a capacity of 4,600 tonnes per day, FLSmidth said in a statement.

“The order will contribute beneficially to FLSmidth’s earnings until the plant is commissioned during 2011,” it said.

Shares in FLSmidth ended up 5 percent at 286.50, outperforming the DJ Stoxx European industrial goods and services index .SXNP, which was up 2.6 percent.

Chief Executive Jorgen Huno Rasmussen told Reuters that the contract would have only a minor effect this year, with the main effects coming in 2010 and 2011.

He said FLSmidth could also get a contract to operate and maintain the plant. Such a deal, he said, could be worth about half as much as the contract to deliver the machinery for the plant.

“It could be up around half (the value) if it is a five-year contract,” he said.

The global financial crisis has put the brakes on many projects around the world in the cement and minerals processing industries where FLSmidth operates.

But industrial development projects in Libya benefit from the country’s large petroleum resources and need to upgrade its infrastructure.

“Libya is continuously developing its infrastructure, and with this recent contract we are proud to have provided the nation’s three latest cement plants that are supporting this development,” Rasmussen aid in the statement.

He said FLSmidth would continue looking for business opportunities stemming from that development. ($1=.6710 EURO) (Reporting by Peter Starck and Karin Jensen, editing by Will Waterman and Rupert Winchester)

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