Chongqing Power firm teams up with cement producer

Chongqing Power firm teams up with cement producer
12 May 2008

Chongqing Fuling Electric Power Industrial said on May 6, 2008 that its affiliate company Chongqing Shuijiang power company and Chongqing Jianan cement company would form a 35-65 cement producing joint venture in Southwest China’s Chongqing City.
Registering CNY 108m in capital, the venture is to build a 1Mta cement plant. Chongqing Fuling or Chongqing Shuijiang would make long-term power supply to the project at preferential prices.
The alliance follows a recent tide for power producers to join forces with cement producers, as the former would get lower-priced cement for building power plants and share revenue of the speedy growing cement sector, and the latter could get cheaper power, which takes a major part of their production cost, said an analyst.
Chongqing Shuijiang is wholly owned by Chongqing Yaofu investment company, which is controlled by Chongqing Fuling. Jianan cement is a local private cement producer with three plants that have a combined annual capacity of 800,000t.
Published under Cement News