Binani Cement Ltd plans to invest US$100m more into the Chinese cement company Shandong Rong’an Group, in which it bought a 49% stake for US$110m earlier in July, sources reported.
Binani was said to intent to tap the debt market for funding the China venture.
Though holding a minority stake, Binani is given the right for management control, and it aims to rise its holding in the venture to 70% by September and to enhance the company’s capacity to 2.2 million tones per year in the next three years, said Mr. Vinod Juneja, Joint Managing Director of Binani.
It plans to sell products by the China venture in mainly the Chinese market, or to Africa and West Asian countries, but not expect to India, for exports.
Located in Rizhao, Shandong Province in East China, Rong’an has a 0.4Mt production capacity per year, and it owns limestone reserves that would be sufficient to cater to the needs for the next 30 years at the projected expanded capacity.