Jidong Cement sells stake to HeidelbergCement

Jidong Cement sells stake to HeidelbergCement
Published: 26 September 2005

Tangshan Jidong Cement Company Limited has recently signed an agreement to form a joint venture to produce and market cement in Shaanxi province of Northwest China with HeidelbergCement Holding Hong Kong.  Tangshan Jidong is the largest cement producer in eastern part of China and Heidelberg Hong Kong is a wholly owned subsidiary of Heidelberg Cement, one of the world’s leading producers of cement, concrete and building materials. 
 
According to the agreement, Jidong Cement will sell 45.77 per cent of stake in its Fufeng plant for CNY 103.3 million, and 40 per cent of stake in its Jingyang plant for CNY 19.6 million to Heidelberg Hong Kong. 
 
Besides, another shareholder of Jingyang plant, the Labour Union of Hebei Jidong Cement Group, will also sell its 10 per cent stock to Heidelberg for CNY 4.9 million.  Thus, the total value for the acquisition will be some CNY 127.8 million. 
 
After the acquisition, Jidong Cement and HeidelbergCement Hong Kong will respectively hold the same 45.77 per cent and 50 per cent of shares of Fufeng Plant and Jingyang Plant. 
 
At present, Jingyang Plant is preparing to build a production line with daily cement production capacity of 5000 tons in Jingyang County in the city of Xianyang in Shananxi Province.  Heidelberg Cement has been active in southern China’s Guangdong province since 1995, and the joint venture this time is expected to create another big market in northern part of the country.