China National Building Material Company Limited (CNBM) plans RMB13.8bn expenses for cement plants and will double cement production capacity to 186Mt in 2008, up from 60Mt in 2007.
CEO Cao Jianglin reveals the company plans RMB14.6 billion of capital expenditure in 2008 and 95% will be allocated for acquiring cement plants. The company will develop up to 90 cement plants by the end of June 2008, becoming the second largest cement producer in the world and a major player in China.
Cao forecasts that CNBM’s gross profit margin in cement business will rise from 27% in 2007 to 28% in 2008. Cao expects the company will raise cement price once or twice again within 2008 and net profit of cement will grow from the present RMB11 to RMB35/t.