Gansu Qilianshan to invest in Northwest China
Gansu Qilianshan Cement Group Co Ltd with its subsidiary will jointly inject CNY482m (US$70.5m) into Hongda Building Materials, an arm controlled by Jiuquan Iron & Steel (Group) Co Ltd or JISCO, according to an agreement signed by the Shanghai-listed firm and JISCO on May 28.
After the injection, Gansu Qilianshan Cement and subsidiary Yongdeng Qilianshan Cement will each hold a 30% stake in the target firm, whose registered capital will increase from CNY54.69m to CNY137m.
Tan Zhongming, board chairman of China National Materials Group Corp Ltd or Sinoma, parent of the listed company, said that Sinoma’s cement output capacity will hit 100Mt at the end of 2011. The target firm Hongda Building Materials, which currently has two cement production lines with an output of 3000tpd in total, will build a 5000t line that will be completed by the end of 2011. Published under Cement News
