Clinker production capacity increased by 3 million tons! Conch Cement intends to acquire two cement assets with a maximum of 691 million yuan.

On July 2, Conch Cement announced that Hefei Conch, a wholly-owned subsidiary of the company, had signed asset transfer agreements with Wanwei Hi-tech, Ulanchabu Conch and Mengwei Science and Technology, respectively, to acquire assets related to the production and sale of cement products in cash. The total transaction price is 619 million yuan (up to 691 million yuan).

This acquisition constitutes a related party transaction, aiming at solving the problem of potential competition in the same industry and improving the market layout of the company's main business. The core assets

of Wanwei High-tech Cement include a cement clinker production line completed in June 2005, three cement mills and a solid hazardous waste disposal production line, with a designed annual clinker production capacity of 2 million tons, a cement production capacity of 3 million tons, and a waste heat steam recovery system. The operation is stable. The core assets

of Mengwei Science and Technology include a clinker production line completed in December 2016, a cement mill, a designed annual clinker production capacity of 1 million tons, a cement production capacity of 1 million tons, a waste heat steam recovery system, and stable operation.