CNBM Buys cement companies

CNBM Buys cement companies
Published: 10 January 2008

China National Building Material Co., Ltd is set to  acquire six cement and clinker manufacturers for CNY 3 billion. Presently, it has inked contracts to purchase Zhejiang Jurong Cement  Zhejiang Shanying Cement and Zhejiang Xingbaolong Building Material Company, three of the six targeted companies, for about CNY 1.4 billion. The remaining CNY 1.6 billion will be mainly used to purchase three  subsidiaries of Zhonglida Group. The running state of some small-sized cement and clinker manufacturers in East China’s Zhejiang Province is hard as the province’s cement and clinker market is nearing saturation. Beside, local industrial regulators launched a series of policies to reduce its production capacity, an effort to avoid a sharp price fall caused by malignant competition among the local cement makers.

CNBM once said that it planned to strengthen its capacity in the nation’s  cement industry via the acquisitions of over 30 cement and clinker  manufacturers in China for as much as CNY 10 billion.