UPDATE 1-FLSmidth signs Indonesia deal worth over $135 mln

* Signs materials handling contract with PT Adaro Indonesia

* Says deal worth over $135 million

(Adds details, quotes)

COPENHAGEN, March 25 (Reuters) - Danish engineering group FLSmidth (FLS.CO) said on Friday it had signed a coal mining equipment deal worth over $135 million with PT Adaro Indonesia.

The group said it would supply material handling equipment to PT Adaro Indonesia, a subsidiary of PT Adaro Energy (ADRO.JK), to a coal mine in the Tanjung district.

"This material handling contract is the first in Indonesia and reflects a growing market in the region, particularly in the minerals sector where mining companies are expanding," FLSmidth Chief Executive Jorgen Huno Rasmussen said in the statement.

The contract comprises an out-of-pit crushing and conveying system, FLSmidth, a supplier of engineering services and equipment to the cement and minerals industries, said.

"Being the first of its kind in Indonesia, the project will act as a catalyst for other potential orders in the region," Rasmussen said. (Reporting by Mette Fraende; Editing by Hans Peters)