West China Cement (WCC), based in the western Chinese province of Shaanxi, announced its preliminary results for the year ended 31 December 2007.
Revenues increased to RMB526m (GBP37.6m) from RMB307m (GBP21.9m) - up 71 per cent. Record post-tax profit of RMB150m (GBP10.7m), a 69 per cent increase over 2006.
The two new production lines at the Lantian plant were both completed on time and operated to capacity by the end of 2007
Tonnage produced for the year totalled 2.42Mt, with the new lines at Lantian contributing 0.98Mt.
Construction of a new plant in Ankang, South East Shaanxi commenced during the year as planned. Construction is targeted for completion in 2009, bringing the total capacity of all WCC plants to 5.3Mt in 2009.
The Ankang plant will have a capacity of 1.8Mt and is located in a region which is poorly served by cement producers. The Chinese Government has cited the western provinces of the country as in need of development, particularly in infrastructure, to match the development of the
east, therefore providing multiple opportunities for WCC.
Jimin Zhang, Chief Executive Officer of WCC, said: "The Government of China’s decision to focus on the Shaanxi Province for development is an exciting opportunity for the company. This will involve the rapid building of roads, railways, power plants, airports and a metro system in Xi’an - all large projects requiring cement. The Shaanxi Province five year plan estimates cement demand at 25Mt in 2006 rising to 40Mt by 2010."