A major Chinese State materials group has decided to go part public by listing three of its subsidiaries on stock markets within two years. Sinoma, the China National Materials Industry Group Corp, intends to transform itself from a technology-focused company to a market-driven one.
The group specializes in non-metal materials, non-metal engineering and non-metal materials exploration, but it is mainly technology focused and still a relatively small company.
"This year is a year of industrial development," said Sinoma President Tan Zhongming.
New strategies will see the group focusing on cement and prioritizing overseas markets.
Sinoma International Engineering Co Ltd, the flagship business of Sinoma, will be listed on the Shanghai Stock Exchange this year, after being approved from the China Securities Regulatory Commission in June. But Tan refused to reveal details about the listing, but said the proceeds will mainly be used to build cement equipment.
Sinoma International is now focusing on cement plant design and construction, but it aims to take a 40 per cent share of the cement equipment market. The firm expects its revenue from equipment manufacturing will add 550 million yuan (US$66 million) a year, when the expansion of current facilities is finished.
In its core business, cement plant design and construction, the overseas market will attract more and more attention, said Si Guochen, the chairman of Sinoma International, adding that the European, American and Middle East markets will be the main target regions.
Tan also said Sinoma was very close to finishing a deal to buy one of the listed cement companies in China and when this is achieved, his company will have a production capacity of 10 million tons a year. "Sinoma is a latecomer into the industry and our goal is to become the most competitive player in the market rather than the biggest," he said.