Cimpor Chengtong Cement, which is effectively controlled by the 40% shareholder Cimpor, has agreed to acquire the entire share capital of Liyang Dofang Cement Company at a cost of approximately EUR25m.
Liyang Dofang Cement operates a cement works in the province of Jiangsu, near Changzhou in the Yangtze delta, with a clinker capacity of 0.9Mta. The turnover last year approached EUR11m.
When the integrated works at Shanting and the grinding mills at Huaian and Suqian are completed next year and the purchase of Liyang Dofang Cement is completed, Cimpor Chengtong Cement will have an annual cement capacity in excess of 6Mt.
In addition to Cimpor and local Chinese investors, a subsidiary of Teixeira Duarte, the leading shareholder in Cimpor, is also a shareholder in Cimpor Chengtong Cement.