China National Buidling Materials to sell four companies

China National Buidling Materials to sell four companies
Published: 23 August 2011

China National Building Material intends to sell four cement companies, reports the China Business News. The company will sell 51 per cent stakes in Shaoxing Southern Cement, Zhuji Southern Cement, Deqing Jiayuan Southern Cement and Haining Sanshi Cement for a total of CNY111m (US$17.3m).

A slumping cement price in Zhejiang province spurred China National Building to begin a cement asset acquisition in Zhejiang at the end of 2006. The current selling targets were acquired by the company after 2006.

However, with the exception of Shaoxing Southern Cement, the three other cement companies all posted losses in 2010. Sanshi Cement reported sales revenue of CNY35.15m and a loss of CNY8.57m. Zhuji Southern Cement posted sales revenue of CNY160m, with a loss of CNY7.24m. Deqing Jiayuan reported sales revenue of CNY65.85m and a loss of CNY16.62 m.