Shanshui Cement acquires Chifeng Yuanhang Cement
China Shanshui Cement Group recently expanded beyond Shandong presence to Inner Mongolia by acquiring Chifeng Yuanhang Cement Company Limited.
Shandong Shanshui Cement Group Company Limited (a wholly-owned subsidiary of Shanshui Cement) and Yuanhang Cement signed an equity acquisition framework agreement on 18 August 2010. This follows on the heels of a cooperation framework agreement between the two companies signed in May 2010. Under the equity acquisition agreement, Shanshui Cement will acquire more than 80% equity interest in the new target company at a total consideration of RMB860 million in two stages. Shanshui Cement had acquired 50% equity interest of the new target company in the first stage.
The Group will further acquire not less than 30% equity interest in the new target company within 13 months after the equity acquisition agreement becomes effective. The new target company’s name will be changed to "Chifeng Shanshui Yuanhang Cement Company Limited" in due course.
Yuanhang Cement has two new dry process clinker production lines, each with a production capacity of 2500tpd (with two sets of 9MW low-temperature waste heat power generators), and three cement grinding lines with annual capacity of 1Mta, 1.3Mta and 300,000tpa respectively, adding annual cement production capacity to 2.6Mt. Yuanhang Cement is the largest cement company in Chifeng City and Eastern Inner Mongolia Autonomous Region, possessing advanced management standards and strong cost-effective operations. The recognised brand name of "Yuanhang" has high brand awareness within the cement industry in these regions and elsewhere in the country.
Published under Cement News
