FL Smidth has signed another contract with Wadi El Nile Cement Company for operation and maintenance of it cement plant located approximately 120km south of the Egyptian capital, Cairo. The contract is a five-year continuation of the existing contract signed in 2010.
In addition, Wadi El Nile Cement also ordered an upgrade of the plant from 6,000 to 7,200 tonnes of clinker per day; the upgrade will be executed as an integral part of the operation and maintenance contract. The parties have agreed not to disclose the value of the contract.
“The continuation of the contract is visible proof of the successful partnership we have with Wadi El Nile Cement. We have now operated their 6,000-tonnes-per-day plant for almost five years. The performance delivered was the main driver for Wadi El Nile Cement to expand and continue their partnership with FL Smidth. The extension of the operation and maintenance contract reflects our ability to increase our customers’ productivity and preserve asset value,” says Per Mejnert Kristensen., group executive vice president, cement division.
The initial contract will expire at the end of 2016 and the new contract term is from January 2017 to December 2021. The upgrade to 7,200 tonnes per day is planned to be operational from summer 2017. The cement industry in Egypt has been a pioneer in outsourcing the operation and maintenance activities.
FL Smidth has already signed contract with three customers in Egypt, and the North-African region continues to offer good opportunities for operation and maintenance activities.
The partnership between Wadi El Nile Cement and FL Smidth proved its worth and strength during 2013 and 2014 when fuel restrictions (gas) in Egypt severely influenced the clinker production and made it necessary to minimise the cost of operation. Wadi El Nile Cement was among the first cement producers in Egypt to introduce coal and thereby eliminate their dependency on gas, which continued to be restricted. Today, the Wadi El Nile Cement plant is one of the most energy-efficient plants in Egypt.