Asia Cement unit plans to buy Sichuan cement plant, China

Asia Cement (China) said its non-wholly-owned subsidiary Sichuan Yadong Cement entered into a framework agreement with the existing shareholders of Sichuan Lanfeng Cement to acquire their entire equity interest in Sichuan Lanfeng and thus indirectly the entire equity interest in Sichuan Lanfeng's wholly owned subsidiary, Sichuan Lanfeng Building Materials.

The target companies principally engage in the business of manufacture and sale of cement, concrete and related products in Sichuan. They operate a cement plant located in Pengzhou City, Sichuan which comprises two new dry-process clinker production lines with total cement production capacity of 5Mta.