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China Shuangji Cement hopes to keep Dongfang plant open

World Cement,

China Shuangji Cement, Ltd., a leading producer of high-quality Portland cement in Shandong and Hainan Provinces in the People's Republic of China (PRC), announced today that one of its four cement plants, the Dongfang facility on Hainan Island, is on a recently published list of more than 2000 production lines across China that the Ministry of Industry and Information Technology (MIIT)* wants to phase out due to concerns about outmoded production methods. China Shuangji is working closely with the government to keep the plant open and potentially expand production in this fast growing resort area.

According to the list, published on 6 August, 2010, the company's Dongfang production line may eventually be phased out as part of the Chinese government's efforts to upgrade and consolidate the cement industry. However, no timetable has been given and the company is working with the government to allow it to upgrade and modernise its Dongfang plant instead. In the event of a closure, the company believes that it may be granted a new production permit for a more modern and bigger production line and other forms of compensation in exchange for the closure. The company's Dongfang production line, established in 1994 in Hainan Province, has an annual production capacity of 500 000 t of cement, representing 33% of China Shuangji's current total production capacity. After the company's new Zhaoyuan facility comes online, the Dongfang facility would represent only 20% of its new increased total production capacity.

"We are working very closely with the Chinese government to resolve this issue as quickly as possible," said Mr. Wenji Song, Chairman and President of China Shuangji Cement, Ltd. "We feel confident we will be successful in this regard and are in a good position to upgrade and modernise our Dongfang facility."

Mr. Song continued, "The company is also presently nearing completion of a brand new state-of-the-art cement facility that would meet all new government standards. This new facility, in Zhaoyuan City, is expected to increase our production capacity by 1 000 000 metric tons to an estimated 2 500 000 metric tons per year, assuming the Dongfang facility remains at 500 000 MT per year. We believe that this new capacity from Zhaoyuan, once it is open, will solidify our position as a major cement player in Shandong and Hainan Provinces."

*A link to the Ministry of Industry and Information Technology's (MIIT) list may be found at

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