Frthr re Production Expansion

Steppe Cement Limited
02 March 2006


Steppe Cement Limited

Major contract for cement line refurbishment awarded to FL Smidth


As foreshadowed by its market announcement on 15 December 2006 Steppe Cement
Limited is pleased to announce that its subsidiary Karcement has closed the
tender process and has awarded the contract for reconstruction of the raw mills,
pre-heater, kiln and cooler of line 5 to FL Smidth. The contract price is in
accordance with the budget for the refurbishment of the line 5 of which the
total is US$73 million.  The equipment to be provided by FL Smidth will be
shipped during the next 14 months and line 5 remains on schedule for
re-commissioning by the end of 2007.






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