FLSmidth has signed a €160 million contract to provide engineering, supply, and supervision of material handling equipment at a Russian port, the company announced Monday.
Entering into a EPS (engineering, procurement, and supervision) contact with Russian marine export terminal owner OTEKO-Portservice LLC to equip its port at Taman on Russia’s Black Sea coast, about 930 miles south of Moscow.
The port owner is constructing a new cargo terminal to accommodate increased exports of coal, iron ore, sulfur, and fertilizers from Russian producers. FLSmidth’s order includes equipment for railcar unloading, screening and crushing, stockyard machines, ship loaders. The Copenhagen, Denmark-based company is also supplying a number of conveyor systems, including those designed specifically for dust suppression or sampling.
“FLSmidth and Oteko have worked jointly on this project for a long time, and have now found a technically and commercially viable solution that allows this project to go ahead, despite the headwind from the commodity market,” said Menfred Schaffer, FLSmidth group executive vice president of the minerals division, in a press release. “It is a good example of how customers can benefit from engaging with FLSmidth early in the development of a project. This order includes supplies and services from various FLSmidth business units and is particularly valuable in times with low capital investments in the mining and minerals industry.”
The company expects the order to “contribute beneficially” to its earnings and capacity utilization until mid-2018.