China National Building Materials Co., Ltd, a state-owned giant in its industry, plans to acquire 10 cement plants in China Mainland and set up a joint venture in Jiangxi Province.
The listed company has inked letters of intent or framework agreement with ten private-owned cement companies. It will respectively buy an 80% stake in Zhonglida Group, Lima Cement, Yaya Cement, Shenhe Cement, and Zhejiang Cement, and all of them are based in Zhejiang Province.
Moreover, CNBM will wholly take over Anhui Feida Cement and Zhejiang Tianji Cement, as well as a 50%-or-more stake in Zhejiang Hejiashan Cement. The combined annual capacity of the eight mentioned above is near 18 million tons.
It also plans to buy a 95% stake both in Zhejiang-based Zhongsheng Building Materials and Zhongsheng Cement, which can respectively produce cement clinker of 5000 tons and 2500 tons daily.
At last, it will cooperate with Jiangxi Cement to set up a venture, which will gain registered capital of CNY 1 billion and will take over Jiangxi Ruijin Cement and Jiangxi Yushan Cement from Jiangxi Cement. CNBM and Jiangxi Cement expect to bolster their annual cement productive capacity in Jiangxi to about 30 million tons within three years.