EnGRO Corporation is pumping CNY32m (USS$7.1m) into a joint venture to build a cement plant in Hebei, reports The Business Times, Singapore.
The company said yesterday that its investment will translate into a 40 per cent stake, while partner Hebei Iron & Steel Group will put in CNY48m in exchange for the other 60 per cent.
The plant will eventually be able to produce 2.4Mta of cement. It will be built in two phases. The first phase involves two production lines of 600,000t each. Phase 2 will start once the market for Phase 1 production is established.
The target market will primarily be China’s southern Hebei province, with the potential to cover the northern part of Henan province also.
EnGro chairman Tan Cheng Gay said: ’This will open doors for the group to partake in iconic projects that include those linked to the high-speed railway era that China has entered, which will last for the next two decades.’
EnGro will fund its stake in the cement plant from internal resources. The joint venture will also take on CNY80m of bank finance.