China National Materials boosts output after merger
Zhou Yucheng, CEO of China National Materials Company Limited, reveals that the company will complete merger and acquisition with Ningxia Jiancai to become the biggest cement producer in northern China. China National Materials will have an annual cement output of 32Mt after the merger.
Zhou said the rising coke price has put pressure on production cost but a relatively low transportation cost in the north has traded off the increase. He also forecasts that there will be an increase in the price of cement stemmed from seasonal factors. Though there is an 8% reduction in profit from cement facilities sales and related services, the bargaining power of the company enables them to shift the cost to customers. Published under Cement News
