Huaxin Cement purchases 100% shares of Sanyuan Cement

Byswb

Updated 2010-11-30

Huaxin Cement Co., world second largest cement manufacturer Holcim's China branch, yesterday announced to purchase 100% shares of Hubei-located Sanyuan Cement Company, a partially owned subsidiary of Hubei Jinglan Group at a price of 23.80 million yuan.

Sanyuan Cement at present has two cement production lines, one 1500 tpd and the other 4000 tpd. 57.5% of its shares was held by Hubei Jinglan Group Cement Company (hereinafter short for "Jinglan Cement"), and the rest by Mr. Lv Youfu, General Manager of Sanyuan Cement.

According to the announcement, Sanyuan Cement realized an operation income of 140 bln yuan in the first nine months, suffering a heavy loss of 45.48 mln yuan.

Last July, Huaxin Cement announced to buy 60% shares of a planned Jinglan unit for 683 mln yuan, into which the latter would inject three cement manufacturing units in central-China Hubei province and and 65% of rights of mining owned by Jingshan Qinglongshan Mining Development Company at a price of 1.05 bln yuan.

But this deal was frustrated in the first quarter of 2010 as Huaxin Cement failed to meet the deadline.

Sanyuan Cement acquisition is said to be a step of Huaxin Cement's efforts of consolidating Hubei market.

Huaxin Cement also announced to buy 70% shares of Fangshan Diamond Cement Company, which is located in Shiyan City of the province.

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