China National Building Material Group Corporation (CNBM) has agreed to acquire a 100% stake in Panzhihua Coal Cement Products Company Limited from Panzhihua Coal (Group) Company Limited. All the companies are based in China.
Panzhihua Coal Cement is engaged in the production and sales of cement and cement products, and Panzhihua Coal (Group) is engaged in coal trading, investment and asset management.
Panzhihua Coal Cement owns two production lines for a cement grinding station with a capacity of 600,000tpa each. Meanwhile, CNBM has started to sell equity in four cement makers in Zhejiang. The stakes were purchased five years ago.
CNBM had acquired a number of cement makers in Zhejiang during past the past few years, improving it ability to control the market.
Cement makers in Zhejiang had generated huge profits following China’s CNY4trn stimulus package launched after the financial crisis a few years ago.
According to Cui Xiaoming, secretary-general of the Zhejiang Cement Association, any addition to the cement production capacity in the province will result in overcapacity. Cui said the government should control total output levels.