CRH confirms China purchase
Irish-based CRH confirms that it has signed an agreement with Shanghai-listed Jilin Yatai Group whereby CRH will acquire a 26 per cent shareholding in Jilin Yatai Group’s cement operations (Yatai
Cement) and partly finance a doubling of production capacity, for a total CRH investment of RMB 2.1 billion (Euro 200m). The agreement also includes an option for CRH to increase its holding in Yatai Cement to 49% by acquiring a further 23% shareholding at an agreed formula after 4 years. The
agreement is in line with the terms of the Letter of Intent signed and announced by CRH and the Jilin Yatai Group in October 2006. Completion of the proposedtransaction is subject to Chinese regulatory approval.
The operations of Yatai Cement comprise 4 integrated cement plants and 2 grinding stations in Jilin and Heilongjiang provinces in north eastern China, with a current cement capacity of 9Mta.
A major investment programme to double annual cement capacity to 18 million tonnes is already underway with completion scheduled for 2009. With this expansion, Yatai Cement will strengthen its leading role in north eastern China and secure its position as a major cement supplier in China.
In a comment, Liam O’Mahony, CRH Chief Executive, said "Following our initial acquisition of the Harbin Sanling Cement Company in February 2007 we are very pleased to have the opportunity to invest in Yatai Cement which further increases and strengthens our cement position in northeast China. We
are optimistic about the prospects for the Chinese cement industry and look forward to working with Yatai Cement as it further grows its business."
Published under Cement News
