Chongqing Fuling Electric Power Industrial said on May 6, 2008 that its affiliate company Chongqing Shuijiang power company and Chongqing Jianan cement company would form a 35-65 cement producing joint venture in Southwest China’s Chongqing City.
Registering CNY 108m in capital, the venture is to build a 1Mta cement plant. Chongqing Fuling or Chongqing Shuijiang would make long-term power supply to the project at preferential prices.
The alliance follows a recent tide for power producers to join forces with cement producers, as the former would get lower-priced cement for building power plants and share revenue of the speedy growing cement sector, and the latter could get cheaper power, which takes a major part of their production cost, said an analyst.
Chongqing Shuijiang is wholly owned by Chongqing Yaofu investment company, which is controlled by Chongqing Fuling. Jianan cement is a local private cement producer with three plants that have a combined annual capacity of 800,000t.