China Resources Cement Holdings Ltd, a major subsidiary of China Resources Group, on Tuesday announced that it plans to buy into Fulong Cement Co Ltd in Shanxi Province, sources reported.
In a statement filed with the Hong Kong Stock Exchange, China Resources Cement will acquire a 72% stake in Guardwise Investments, which wholly owns Fulong Cement, for US$72. In addition, China Resources Cement will also provide up to RMB 1.52 billion in shareholder loan.
The stake acquisition is in line with the firm’s long-term development plan and will enable it to boost business presence in Shanxi Province, said China Resources Cement. China Resources Cement, the largest cement producer in South China by output, said early that it expected to increase its capital expenditure for capacity expansion by 9% to HK$6 billion this year, and that it plans to double its market share in South China to 25%.
Last month, China Resources Cement acquired two cement plants in Fujian Province for RMB 830 million in total, expediting its capacity expansion plans in South China.