China National Building unit inks four China deals

China National Building unit inks four China deals
27 September 2007

China National Building Material Co Ltd (CNBM) said 75 per cent-owned unit Nanfang Cement Co Ltd has signed four separate deals that will eventually help the group expand its cement and clinker production in the mainland through joint ventures and acquisitions.  

Under the first agreement, Nanfang Cement agreed to contribute CNY500m out of the CNY1bn registered capital of Nanfang Wannianqing Cement Co Ltd, which will be engaged in the manufacture, sale, research and development of cement and related products.  

Nanfang Cement’s joint venture partner,  Jiangxi Wannianqing Cement Co Ltd, will contribute the other CNY500m to the joint venture’s registered capital. Nanfang and Jiangxi Wannianqing will own the joint venture on a 50-50 basis.  

CNBM said the establishment of Nanfang Wannianqing will allow the group to further develop and expand its cement business in China’s southeast region.  

The company also expects to benefit from synergies and production efficiencies as a result of the establishment of Nanfang Wannianqing.  

In a second transaction, Nanfang Cement has agreed to acquire 100 pct of Zhejiang Cement Co Ltd for CNY788.45m.  

In a third deal, Nanfang Cement bought a 90 per cent stake in Zhejiang Hushan Group Co Ltd for up to CNY344.25m.  

Hushan Group is currently engaged in the production and sale of cement in Zhejiang province.  

Under the fourth deal, Nanfang Cement will contribute 260 mln yuan in cash while its partner Zhejiang Jianfeng Cement Co Ltd will contribute 140 mln yuan to the registered capital of their joint venture, Zhejiang Nanfang Jianfeng Cement Co Ltd.
Published under Cement News