Nanfeng cements position

Nanfeng cements position
Published: 21 August 2007

China National Building Material Co Ltd (CNBM) has set up a joint venture with five other companies to boost its business in the fast-developing southeast.  
 
CNBM has taken a 75 pe rcent stake in the new venture, Nanfang Cement, which has registered capital of CNY3.5bn.  
 
Zhejiang Bangda Investment holds a 12.5 per cent stake in the venture, Jiangxi Wannianqing four per cent, Hunan SASAC 3 per cent, Jianfeng Group 3 per cent and Beijing Huachen 2.5 per cent.  
 
"CNBM established Nanfang Cement as a platform to develop and acquire cement producers in the southeast region of China," the company said in a statement to the Hong Kong stock exchange last Friday.  
 
Analysts said the increase in mergers and acquisitions by cement producers this year has been encouraged by the National Development and Reform Commission.