China National Building Material plans to raise cement clinker production capacity to 30Mt.
Chang Zhangli, company secretary of China National Building Material Company Limited (CNBMC), said the company plans to expand its cement clinker production capacity to 30Mt from the current 25Mt through acquisition.
CNBMC’s cement production capacity in the provinces of Shandong, Jiangsu, Henan and Hebei has increased from 11Mt to 30Mt.
CNBMC may acquire Zhejiang Cement and Hushan Cement, which its parent company China National Building Material Group Corporation intends to acquire.
Lehman Brothers estimates CNBMC’s cement production capacity will rise to 40-50Mt by the end of 2007. The production capacity of its potential targets of acquisition, Taishan Cement Group, Zhejiang Cement, Hushan Cement, Jiangsu Cement and Hubei Jianfeng Cement amounts to 28.9 million tonnes.