Holcim is expected to become the largest shareholder of China’s second largest cement producer Huaxin Cement. The two companies are in acquisition talks, an official from the city government of Huangshi, where Huaxin Cement headquarters, said in a telephone interview on November 28.
Holcim may pump more than CNY 800 million to add its stake in the Chinese cement company, a source close to the talks disclosed. However, Huaxin Cement has not confirmed the report.
Huaxin Cement, which has been in partnership with Holcim since March 1999 has seen its capacity grow rapidly. Huaxin Cement’s total production was reportedly just over 1Mt in 1993. Total capacity is now estimated at over 20Mt (including a number of grinding installations. The number surges to 22 million tons now.
Holcim first bought a stake in Huaxin Cement in 1999, becoming the second largest shareholder. It increased its stake in Huaxin Cement to 26.11 per cent in early 2005.