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Denmark's FLSmidth in pact with L&T for building cement plant in Chennai

Livemint:  June 24, 2016

Mumbai: Copenhagen-based FLSmidth & Co. Thursday said it will supply technology and equipment for a 3,000-tonne cement plant that will be built by Larsen & Toubro (L&T) in Tamil Nadu.

In a statement, FLSmidth said it has signed an agreement with L&T, India’s largest engineering company. The company did not disclose the value of the contract for the plant, which will come up Ariyalur, approximately 300 km south of Chennai.

The plant is being built for Tamil Nadu Cement Corp. Ltd (TANCEM), a wholly owned undertaking of the Tamil Nadu government, with whom L&T has an EPC (engineering, procurement and construction) contract.

Interestingly, L&T was founded by two engineers—Henning Holck-Larsen and Søren Kristian Toubro—who came to India from FLSmidth. In 2005, FLSmidth had accused L&T of violating the licensing agreement between the two.

The Chennai order for FLSmidth includes a complete range of equipment from crushing to packing plant and is expected to deliver in over the next 16 months.

“The project combines the strengths of FLSmidth as a leading supplier of the most productive and energy-efficient cement plants, and that of L&T as a reliable turnkey construction player, providing the full EPC solution to the end client. India is an important market for FLSmidth, and with the growth expectations and the many infrastructure projects in the pipeline to support this growth, we expect an increasing level of activity in India in the coming years,” country head of FLSmidth India, Carsten Riisberg Lund said.

An L&T spokesperson declined to comment.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.