Anhui Conch Cement plans to expand its business through mergers and acquisitions (M&A), after the Chinese government released some policies to put a clamp on the overcapacity cement industry.
Earlier, the company has gained the approval for the construction commencement of some projects with the focus on cement structural adjustment and energy saving upgrade projects in central and western Chinese areas, disclosed its general manager Guo Wensan, adding that the planned investment will reach more than CNY10bn.
For the moment, Conch Cement, based in the central Chinese province of Anhui, is running its cement business in 19 provinces, municipalities, and regions across the country. Its new capacity will mostly lie in central and western Chinese areas, such as Sichuan, Yunnan, Guizhou, Gansu, Chongqing, and Guangxi.
In 2009, the company gained turnover of CNY54.5bn. Its total pre-tax profit jumped 47 per cent YoY to CNY5.8bn. This year, its operating revenue is expected to top CNY60bn. After three to five years of hard work, Conch Cement can harvest operating revenue of over CNY100bn, according to the general manager.