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

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Thu Oct 8, 2009 12:15pm EDT

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







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 otherassumptions, 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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