A subsidiary of Jiangxi Wannianqing Cement Co., Ltd) and Shanghai-based Nanfang Cement Co, Ltd will set up a joint venture in Yongfeng, Jiangxi Province.
Named Jiangxi Yongfeng Nanfang Wannianqing Cement Co, Ltd, the new cement company will register CNY200m in capital, 80% of which will come from the listed company. The two shareholders will pay the capital both in cash.
The joint venture will build two 4500tpd clinker production lines and associated 9MW low temperature waste heat power generation project in Yongfeng County.
Notably, Jiangxi Cement Co., Ltd., which holds a 50% stake in the listed company, is also a major shareholder of Nanfang Cement Co., Ltd., which is a joint venture established by six investors.
Jiangxi Wannianqing Cement got CNY 33.06 million net profits in 2007, surging 245.06% year over year. The company produced 4.0853 million tons of cement and 4,3837 million tons of clinker last year, growing 30.36% and 31%, respectively.