China Resources Cement to acquire assets from Goldman Sachs

China Resources Cement to acquire assets from Goldman Sachs
Published: 01 July 2011

China Resources Cement Holdings Ltd, the largest cement producer in South China, has announced plans to acquire a 100% stake in Inner Mongolia Cement Strategic Investment Holdings Ltd (IMCS) from US-based investment bank Goldman Sachs at a consideration of CNY1.56bn (US$241m).

IMCS holds a 40.6% stake in Inner Mongolia Mengxi Cement Co Ltd, which is the largest clinker and cement producer in the lnner Mongolia autonomous region. Inner Mongolia Mengxi Cement currently has eight clinker production lines with a total capacity of 29,900tpd and 22 cement grinding lines with a capacity totalling 12.47Mta. The cement supplier also has a clinker line with a capacity of 5000tpd and two grinding lines with a total capacity of 2Mta under construction, which will go into operation in August 2011.

Before this acquisition, Hong Kong-listed China Resources Cement did not own any clinker or cement production facilities in Inner Mongolia.