NEWSLETTER OF THE AMERICAS. Volume 8 August 2009

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1 NEWSLETTER Volume 8 August 2009 OF THE AMERICAS Without a doubt, the worldwide economic downturn continues. Although no one is certain as to how or when this will end, a crisis can inspire clarity. At FLSmidth Inc., our purpose and mission remains clear; integrate and refine our offerings to best help you produce cement efficiently, cleanly and safely. Optimizing Efficiency FLSmidth has been focusing its efforts on solutions that help you maximize efficiency. For example, as described on Page 4 of this Newsletter, specialists in areas such as pneumatic transport have been helping many of you identify improvements that may not have been practical to implement when cement demand was at record highs. Similarly, as discussed herein, Cement Services offers specialized energy audits such as one to optimize the efficiency of a vertical raw mill. Furthermore, Airtech has begun to use its proprietary modeling software, originally created for the design of new baghouses, to now also evaluate existing installations. Each of these products and services potentially offers very short pay backs with long term benefits. New Contracts We are very pleased to include some details in this Newsletter regarding three new contracts for plant expansions in Peru. We perceive the receipt of these contracts to be further evidence of our ability to offer solutions that minimize the total cost of ownership. With the supply of three systems which will increase the net production in Peru by over 12,000 TPD, FLSmidth is reinforcing its strong presence in Latin America. Integrated Approach to Emissions Solutions Many of you have cited competence in emissions technology as a key factor in awarding us your business. Excellence in emissions requires a diversity of experience and expertise. At FLSmidth, our extensive reference list has enabled us to create the industry leading predictive model for calculating emissions levels. Consequently, we have the ability to evaluate the size and design of the critical aspects of the pyro processing line. With the integration of our product companies, we offer complete air pollution control solutions as well as other mitigation systems such as SNCR. Cement Services has the expertise to operate, test, and improve equipment performance to minimize emissions. Finally, FLSmidth Automation has the industry-leading products and expertise for measurement and reporting. Historically, our organization has seamlessly integrated these various disciplines in the execution of large projects. With the ever-tightening state, regional, and national laws throughout the Americas, especially the newly proposed legislation in the United States, FLSmidth has formed The Emissions Business Development Group. With representatives across functions and divisions, the team will help owners and operators of existing plants investigate the best total solution for their specific needs and concerns. Without suppliers investing in the future and developing new products and processes, the cement industry can potentially fall behind other competing technologies. The cleaner and more efficiently cement is produced, the better for all stakeholders. To that end, our goal is to partner with you; identify needs, offer solutions. We are more committed than ever to helping our customers operate efficiently and stay the course with us. Please do not hesitate to contact us for any reason. Mark Brugan Vice President Sales, Marketing & Customer Relations FLSmidth Inc.

2 NEWSLETTER OF THE AMERICAS FLSMIDTH SIGNS THREE CONTRACTS FOR PLANT EXPANSIONS IN PERU FLSmidth has been successful in winning three contracts in Latin America. All three contracts include engineering services, project management, training, and commissioning. Furthermore, each line will be designed to minimize operating costs and ensure that all applicable World Bank environmental standards are achieved. Cemento Andino S.A. A new pyroprocessing line at Cemento Andino S.A. s Condorcocha plant, located approximately 200 km from Lima, will be expanded from a capacity of 2100 tonnes per day to almost 6000 tonnes per day. FLSmidth s scope of supply consists of a 5-stage preheater with an ILC (In-Line Calciner) and a Multi-Movable Cross-Bar cooler. Yura S.A. A new 4200 TPD pyroprocessing line at Yura S.A. s plant located near the city of Arequipa in the south of Peru will incorporate the most modern processes. FLSmidth will supply an ILC 5-stage preheater with low NOx and low CO calciner, 2-pier kiln, a Multi-Movable Cross-Bar cooler with heavy duty roller breaker, a CF silo and kiln feed system. In addition, all of the main process baghouses will be supplied. Cementos Lima S.A. Cementos Lima S.A. s plant located near Lima, Peru, in the area known as Atocongo will be expanded to produce 15,000 tonnes of clinker per day, a net increase of nearly 4,250 TPD. FLSmidth s scope of supply will include a 5-stage preheater, with an ILC (In-Line Calciner), and a Multi- Movable Cross-Bar cooler. A baghouse filter shared by the kiln and raw mill as well as a cooler vent ESP (electrostatic precipitator) will be supplied. Project Execution Project execution will be led by the US Project Office and supported by FLSmidth s personnel based in the Andean Region. OPTIMIZE BAGHOUSE PERFORMANCE Many plants endure maintenance challenges associated with their baghouses. As plants undergo upgrades or alter their process, the baghouse often gets left behind, resulting in an obsolete configuration. For a new plant, operation and maintenance issues were not always forefront in the purchase criteria. As a result, the undersized or unbalanced baghouse can result in: Short bag life An opacity (visible emissions) High differential pressure that can restrict the process; the baghouse limits the production or creates higher energy costs Historically, fixes to a baghouse often focused on the specific problem area, but did not account for the total impact to the system. For example, wear may be alleviated in a single problem area only to create a new air flow pattern resulting in a different problem area or issue. Computational Fluid Dynamics (CFD) To achieve the best total solution, FLSmidth Airtech has begun to utilize proprietary modeling software, based on Computational Fluid Dynamics (CFD). The software, using FLSmidth s cement process knowledge combined with Airtech s expertise in Air Pollution Control, was originally intended for new installations. Consequently, the algorithms have been proven and refined through thousands of 2 Volume 8 August 2009

3 ASH GROVE CEMENT RENEWS SERVICE AGREEMENT The annual service agreement encompasses FLSmidth Automation systems at seven Ash Grove plants. This is the third year the contract has been in effect and it reinforces close cooperation and service support. In addition to renewing the service agreement, Ash Grove Cement will utilize our newly introduced report card. This report card is automatically generated to highlight the operational status of our Process Expert High Level Control System (PXP) and alert us, as well as Ash Grove, to actual or developing problems. The agreement provides: 22 preventative maintenance visits for service of 19 systems Remote support to enable fast and efficient troubleshooting of plant problems from FLSmidth s headquarters 24/7 on-call support Software updates Products covered by the agreement are: ECS/ACESYS process control system ECS/ProcessExpert high level expert control system ECS/PlantGuide historian for data reporting and analysis QCX/Laboratory information system QCX/BlendExpert raw mix control ECS/CemScanner kiln shell scanner The goal is to improve reliability, ensuring that Ash Grove is receiving the maximum value from the products. A report card is automatically sent (pushed) to an Automation server where the report is processed and key information is sent to the appropriate support people. The push concept provides an effective method to closely monitor the plant s PXP performance; and while we are presently focusing on the PXP product, the method will be expanded to other FLSmidth products, systems and services. For further information contact us at support.flsa-us@flsmidth.com references for new baghouses since the early 1990s. This same software has now been adapted to evaluate existing installations. The analysis will not only investigate overall performance, including the location of problem areas, but will also identify the specific solutions including drawings to illustrate the recommended modifications. As appropriate, FLSmidth Airtech s Retrofits & Rebuilds Group utilizes CFD to engineer, supply and execute a project from a new baghouse to a modification. However, a CFD analysis is also available as a stand-alone product. A plant must provide data regarding the processes, a layout drawing of the baghouse with all major dimensions, and a summary of the number of bags, sizes, etc. Given complete and accurate information, a service call is not required. A recommended solutions report is delivered in approximately 4 weeks. 3

4 COMPREHENSIVE PNEUMATIC CONVEYING SYSTEM AUDIT: SMALL INVESTMENT, LARGE RETURN The optimum performance of your pneumatic conveying system requires proper maintenance, process design, and component selection. Over time, operating conditions may change or equipment may age resulting in energy loss or even decreased performance. FLSmidth can help you address any of these issues. With our industry-leading experience and complete portfolio of products and services, we can perform a comprehensive audit that will reveal the improvements needed to make your system operate at its full potential and at maximum efficiency. FLSmidth has been designing pneumatic conveying systems for over 85 years. FLSmidth engineering and technology departments have over 450 man years of experience. FLSmidth has a five million dollar test facility devoted to pneumatic transport and bulk solids handling. FLSmidth spends over one million dollars per year in pneumatic conveying product development. FLSmidth routinely performs field evaluations of customer pneumatic systems. What are the goals of an Audit? Find operational savings This could include recommendations about the use of high efficiency motors to save on power consumption. It may include the reduction of equipment required to produce the desired production result, or it may include changes to screw pitch, etc., to achieve the desired system capacity. This task will be accomplished by studying each system visually and interviewing key plant personnel as to what they have experienced during operation, and what they wish to achieve with that system on an ongoing basis. It is expected that the plant will provide any run data required to analyze the system. In some cases, we will ask for a material sample to be sent to us for further evaluation. Find maintenance savings A review of maintenance practices and an inspection of select components may uncover potential power savings and opportunities to improve performance. For example, a dirty intake filter on a compressor increases the pressure drop. In turn, this results in wasted power without any benefit in moving material. Similarly, gas leakage from worn valves or worn clearances reduces efficiency. In a more extreme case of excessive leakage, convey line velocities can fall below the design rate and degrade system performance. Troubleshoot current system issues Many pneumatic conveying systems are not being operated according to the initial design parameters. Over time, different or new materials may need to be conveyed, or perhaps the overall system configuration was modified. An evaluation of the process design, including laboratory testing of the actual material(s) being conveyed, will define the true existing conditions including the materials battery limits of operation. As a result, an analysis can then be performed to identify simple improvements. For example, inexpensive alterations to the air flow or size of the line charging device (or similar) can yield significant savings and lessen the headaches of plant personnel. 4

5 HOT TIP - VERTICAL MILL OPTIMIZATION Vertical Roller Mills offer significant energy savings per ton of product as compared to ball mills. To ensure that their full savings potential is achieved, three common operational parameters are evaluated: 1. Finding the Correct Dam Ring Height Proper thickness of the grinding bed is critical to the overall efficiency of a vertical mill. It is a function of table power, distribution of grinding force, stability (vibration) of the mill and, most significantly, dam ring height. The dam ring acts as a retaining wall to keep the material underneath the rollers contributing to the grinding bed thickness. An excessive dam ring height leads to inefficient grinding. 2. Correct Hydraulic Pressure Setting The hydraulic pressure determines the force applied to the material on the grinding track. The optimal setting, which is highly dependent on the hardness of the material being ground, results in more work being done with fewer passes of the material under the rollers. Consequently, the internal recirculating load is reduced and higher production and/or a finer product is achieved. Furthermore, power consumption (kwh/ton) is minimized. Always consult the machine supplier to confirm the maximum pressure for your mill. 3. Pressure Drop Analysis Too high of a pressure drop across a mill steals both energy and production. Although the louver ring is a major contributor of pressure drop, it can often be adjusted to reduce the impact depending on the material reject rate out of the mill. Another common cause of unnecessary pressure drop is the creation of a material cloud, an unwanted recirculation of material over the table. This occurs when the body velocities are too low due to either a problem in the air stream to the separator or an excessive amount of rejects. Adjustments in the internal geometry of the mill can often be made to assure a proper velocity profile and therefore alleviate the material cloud. NEW LOCATION IN BRAZIL Brazil s diverse market needs are supported by virtually every division and product company within the FLSmidth group. FLSmidth continues to strengthen its strong local support, offering customized solutions. As a result, our São Paulo office has relocated to a newly constructed office in Sorocaba, Brazil where all FLSmidth business units will be represented. Please update your records with the new address, telephone, and fax: FLSmidth Ltda. Rua JosÈ Dolles, 264-1st Floor - Jardim Clarice II Votorantim - SP - Brazil CEP Telephone: Fax:

6 Newsletter of the Americas is a publication of FLSmidth Inc. and is published 3 times per year. PRESORTED First Class Mail U.S. POSTAGE PAID Lehigh Valley, PA PERMIT 121 Brenda Kaplan, Editor Avenue C Bethlehem, PA USA sales-us@flsmidth.com EMISSIONS TASK FORCE YOUR PARTNER FOR EMISSION SOLUTIONS Environmental regulations continue to be a mix of ever-tightening state, regional, and national laws. The EPA recently proposed sweeping changes to the allowed emission limits that can potentially affect not only new, but most existing plants in the United States. In addition, World Bank emission standards are impacting the cement industry throughout the Americas. To help prepare and best serve our customers, FLSmidth created a cross-functional team, the Emissions Task Force. Demonstrated Excellence in Emissions FLSmidth has demonstrated world-class capabilities and expertise in emissions technology. We offer the broadest range of solutions to reduce plant level emissions: baghouse designs for particulate removal, industry-leading low NOx technology, SOx and HCl reduction technologies, THC/VOC controls, and a cost-effective solution to mitigate mercury emissions (the Mercury Roaster System, as referenced in our April 2009 newsletter issue, Page 5, entitled Systems for Mercury Control ). In order to fully leverage our collective expertise, the Emissions Task Force consists of members that represent our diverse capabilities. The primary focus of this team will be to partner with our customers and investigate the best total solution to address a customer s specific needs and concerns. Contact the Emissions Task Force direct at emissions-us@flsmidth.com Meet the Emissions Task Force team: Seated, left to right: Hasmukh Patel (Automation), Steve Miller (Pyro Product Management), Brad Rauch (Auxiliary Equipment Engineering), Scott Zolotsky (Cement Sales) Standing, left to right: Jeppe Sorensen (Airtech), Neal Biege Jr. (Automation) Pete Paone (Cement Process Engineering), Robert Shenk (Customer Service Projects) Not shown in photo: Dave Escott (Pneumatic Transport), Karsten Floor (Airloq), Tom Freas (Minerals Process Engineering) 6 Our newsletter makes no offers, representations or warranties (express or implied), and information and data contained in this newsletter are for general reference only and may change at any time. Please contact us for specific information or data that may relate to your interests.