News reports from China confirm that China Resources Cement and Shanxi Huabao have established a joint venture (JV) company, China Resources Cement (Changzhi) to engage in the production and sale of cement.
The JV has entered into an agreement with Shanxi Huabao for acquiring assets relating to a 1200 tpd NSP clinker production line and two cement grinding lines (total production of 600 000 tpa) currently operating in Changzhi, Shanzi Province, for a consideration of about RMB 139.53 million. The JV will also build a 4500 tpd NSP clinker production line and two cement grinding lines with a production of 2 million tpa, which is expected to begin operating by the end of 2012.
China Knowledge reports that West China Cement Ltd, based in Shaanxi Province, plans to set up a JV to obtain exploration rights on a limestone mine in Ankang, Shaanxi Province, for a consideration of about RMB 50 million. Jianghua Cement, also based in Shaanxi Province, is to launch the JV with a registered capital of RMB 150 million to complete the acquisition. West China Cement will hold an 80% stake with an investment of RMB 220 million, including RMB 120 million for registered capital, while Jianghua Cement will have the remaining 20% stake. In December 2010, West China Cement secured a loan worth US$85 million from ICBC International, a wholly owned subsidiary of Industrial and Commercial Bank of China.
Last month the Sinoma Group unveiled a plan in which the Group is aiming to earn more than RMB 150 billion in operating revenue in 2015. In that year the Group’s gross profits are expected to exceed RMB 15 billion, and it hopes to have over RMB 150 billion in total assets at the end of the same year. At present, the Group has an output capacity of 70.5 million tpa of cement and 9 million m3 of concrete, and by the end of 2010 it was expected to have added a further 28.5 million t. It also had anticipated that it would have reduced coal consumption by 80 000 t and CO2 emissions by 200 000 t.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/05012011/cement_acquisistion_and_sales_news_from_china-/