Gansu Qilianshan Cement Co., Ltd. (China) today announces that it will spend CNY 454.68 million building a 3,000-ton cement precalcining production line, in a bid to effectively integrate its resources in southeast Gansu, a northwestern Chinese province, reports SinoCast.
Its wholly-owned subsidiary, Gangu Qilianshan Cement Co., Ltd., will be responsible for this construction, so the Shanghai-listed cement producer agrees to inject additional CNY 90 million into the subsidiary. By last yearend, Gangu Qilianshan Cement had separately had total assets and liabilities of CNY 136.3513 million and CNY 81.9294 million.
After a valid construction period of 12 months, the new cement precalcining production line will help Gansu Qilianshan Cement achieve sales revenue and profit of CNY 315 million and CNY 95.82 million per year, respectively. Meanwhile, the company is estimated to recover its static investment within 4.79 years.
Gansu Qilianshan Cement also intends to take over a cement sales company from another subsidiary, Tianshui Qilianshan Cement Co., Ltd., for CNY 1.91 million, according to its announcement.