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KHD Humboldt Wedag International Ltd. Announces the Completion of the Sale of Its World-Wide Coal and Minerals Operations and Its Manufacturing Facility in Cologne

10/08/2009

NEW YORK, Oct. 8 /PRNewswire-FirstCall/ -- KHD Humboldt Wedag International Ltd. (NYSE: KHD) ("KHD") and McNally Bharat Engineering Co Ltd ("MBE") are pleased to announce that MBE's wholly owned Singapore subsidiary, MBE Holdings Pte Ltd, has completed the purchase of KHD's coal and minerals operations and manufacturing facility in Cologne.

The transaction is part of KHD's strategy to focus on its core cement business. KHD intends to develop an operational structure that is closer to its customers and has already created new customer service centers around the world. Part of this focus on the core business will mean a much greater emphasis on customer services and KHD intends to build a stronger market presence in the medium term.

KHD's goal is to create one integrated KHD team offering competitive products and services and to become a customer focused service company providing environmentally friendly technology.

KHD has retained its Roller Press (HPGR) products and will continue to develop this exciting product in the minerals sector in the future, where we see numerous opportunities. This product offers significant energy saving compared to similar competing technologies and is a good example of KHD's increased focus on environmentally friendly products.

Jouni Salo President of KHD commented, "The consideration was above the book value of the assets sold and will result in the transfer of around 225 employees in the coal and minerals operations and 108 at the manufacturing facility in Cologne to MBE. KHD would like to thank these employees for their professionalism during this transaction, which commenced at the start of 2009, and wish them every success in the future. We believe that this is a good outcome for all parties involved and that MBE will be an excellent partner for the coal and minerals operations and the workshop in Cologne.

The sale of the manufacturing facility in Cologne means that KHD will no longer have a captive manufacturing base and this will significantly lower the fixed cost base of our business as well as giving the company total flexibility to provide the best solutions for our customers, wherever they are located. We will however continue to work very closely with MBE in the future as they will become one of KHD's key suppliers and we look forward to building a mutually beneficial and long term relationship with them."

About McNally Bharat Engineering Co Ltd

McNally Bharat Engineering Company Ltd. is one of the leading engineering companies in India engaged in providing turnkey solutions in the areas of power, steel, alumina, material handling, mineral beneficiation, coal washing, ash handling and disposal, port cranes, civic and industrial water supply.

About KHD Humboldt Wedag International Ltd.

KHD Humboldt Wedag International Ltd. owns companies that operate internationally in the industrial plant engineering and equipment supply industry, and specializes in the cement industry. The Company has offices in Cologne, Delhi, Dessau, Atlanta and Vienna, with subsidiaries around the world. To obtain further information on the Company, please visit our website at http://www.khd.com

Disclaimer for Forward-Looking Information

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's future growth, results of operations, performance and business prospects and opportunities. The worldwide macroeconomic downturn has resulted in the prolonging or cancellation of some of some of our customers' projects and may negatively affect our customers' ability to make timely payment to us. Further, it may result in a further decrease in the demand for our products or services. Any of these may have a material adverse effect on our operating results and financial condition. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain assumptions. These assumptions, which include management's current expectations, estimates and assumptions about certain projects and the markets the Company operates in, the global economic environment, interest rates, exchange rates and our ability to attract and retain customers and to manage our assets and operating costs, may prove to be incorrect. A number of risks and uncertainties could cause the Company's actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a downturn in general economic conditions in Asia, Europe, Russia, Eastern Europe, the Middle East, the United States and internationally including, the worldwide economic downturn resulting from the effects of the subprime lending and general credit market crises, volatile energy costs, decreased consumer confidence and other factors, (2) a decreased demand for the Company's products, including the renegotiation, delay and/or cancellation of projects by our customers and the reduction in the number of project opportunities, (3) a decrease in the demand for cement, minerals and related products, (4) the number of competitors with competitively priced products and services, (5) product development or other initiatives by the Company's competitors, (6) shifts in industry capacity, (7) fluctuations in foreign exchange and interest rates, (8) fluctuations in availability and cost of raw materials or energy, (9) delays in the start of projects included in the Company's forecasts, (10) delays in the implementation of projects included in our forecasts and disputes regarding the performance of the Company's services, (11) the uncertainty of government regulation and politics in Asia and the Middle East and other markets, (12) potential negative financial impact from regulatory investigations, claims, lawsuits and other legal proceedings and challenges, (13) the timing and extent of the Company's restructuring program and the restructuring charges to be incurred in connection therewith, and (14) other factors beyond the Company's control. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risk Factors" section in our Form 6-K filed with the Securities and Exchange Commission and the "Risks and Uncertainties" section in our MD&A filed with Canadian security regulators.

 

 

    Contact Information:
            Allen & Caron Inc.
            Rene Randall
            Joseph Allen
            (investors)      KHD Humboldt Wedag International Ltd.
            1 (212) 691-8087              1 (604) 683-8286
            joe@allencaron.com            randall.r@khd.de
            or
            Len Hall
            (media)
            1 (949) 474-4300
            len@allencaron.com
            

 

 

 

 

 

 

 

 

SOURCE KHD Humboldt Wedag International Ltd.

investors, Joseph Allen, +1-212-691-8087, joe@allencaron.com, or media, Len Hall, +1-949-474-4300, len@allencaron.com, both of Allen & Caron Inc., for KHD Humboldt Wedag International Ltd.; or Rene Randall of KHD Humboldt Wedag International Ltd., +1-604-683-8286, randall.r@khd.de

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