Calls to curb the massive loan growth on the mainland are not stopping China Resources Cement Holdings from doubling production capacity.
The state-owned firm’s plant in Fengkai, Guangdong, started operation last year. Its annual production capacity is 4Mt, which would double to 8Mt in January, said the company’s strategic development director
By 2012, the plant would have an annual production capacity of 12Mt of cement, 9.3Mt of clinker and 4Mt of concrete, he said.
Currently, the largest cement plants in the world have annual production capacity of 10Mt and there are four plants, all on the mainland. Three are owned by Anhui Conch Cement. The fourth, in Pingnan, Guangxi, is owned by China Resources.
The total investment in the Fengkai plant is CNY5.5bn (HK$6.4bn), with CNY1.4bn yet to be invested, Yu said.
"We have no problem obtaining bank financing," he said.
People’s Bank of China adviser Xia Bin has called for a slowing of the nation’s loan growth to reduce the excessive liquidity fuelling inflation.