Anhui Conch Cement Co said it will spend CNY3.17bn to increase production capacity by 18,000tpd, to meet strong demand for cement driven by the rebuilding of western China following the Sichuan earthquake in 2008.
The Chinese company will use internal resources of CNY1.97bn and CNY1.2bn from its CNY11.48bn yuan-denominated A-share issue in May to fund the expansion, it said in a statement late Wednesday.
The plan is subject to the approval of shareholders, but the company already started building the projects in the second half of 2008. Shareholders are expected to vote at a meeting in early 2009, Anhui Conch said.
The company plans to increase its cement and clinker production capacity by 4,500tpd at each of its four new projects in Dazhou and Guangyuan in Sichuan province, Pingliang in eastern Gansu province, and Chongqing in southwestern China.
The company will also build residual heat power generation units to complement the new plants, which are expected to be operational between the third quarter of 2009 and second quarter of 2010, Anhui Conch said.
A large portion of the remaining proceeds from its A-share issue will be spent on new projects in western China, Anhui Conch said.
’The company (is considering) accelerating project development in Sichuan and Chongqing,’ Anhui Conch said.
Source: Dow Jones Newswires