China National Materials Co. Ltd (Sinoma) has announced that it is negotiating acquisitions in Europe and the US at 1 – 10 billion yuan each.
The company has been experiencing increased sales following China’s construction boom, and has reported a 71% rise in first half earnings to 766 million yuan. Its cash and cash equivalents were above 12 billion yuan at the end of June.
The company’s President, Li Xinhua, has said that the company is in talks over a number of projects: “This is a good time for overseas acquisitions because of the appreciation of the yuan.”
If concluded, the acquisitions would act as a key part of the company’s expansion strategy. Xinhua added: “We can help [overseas companies] to cut costs and they can fit our technology.”
Sinoma is the largest cement equipment maker in the world, with an order backlog of 60.16 billion yuan at the end of June.
The company’s Chairman, Tan Zhongming, confirmed that Sinoma will continue to evaluate possible acquisition targets in western China, as well as build new production lines. The company currently has 14 production lines under construction with a combined capacity of 23.2 million t.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/01092011/sinoma_looking_to_expand_overseas/