China: Asia Cement arm buys plant in Sichuan province

Byrebecca3360

Updated Fri, 18 Apr 2014 11:15:44 GMT

Asia Cement (China) Holdings, a subsidiary of Taiwan-listed Asia Cement, has agreed to buy a cement plant in western China’s Sichuan Province for the equivalent of USD 161 million.

Asia Cement (China), which focuses its business on mainland China, said in an announcement today the purchase will speed its expansion in Sichuan and increase its local market share there. The company’s Hong Kong-traded shares have gained 70 per cent in the past year.

Taiwan billionaire Douglas Hsu is the chairman of both Asia Cement and Asia Cement (China) Holdings.

China’s cement industry has ridden a long wave of growth in the country’s construction business, but faces consolidation amid a period of slower growth and tougher environmental rules.

Asia Cement (China)’s purchase is expected to be finalised with the signing of a handover agreement on May 31. The factory, which is currently owned by two individuals, has production capacity of five million tonnes annually.

Hsu leads Taiwan’s Far Eastern Group. Its publicly listed businesses include Far EasTone Telecommunications, Asia Cement, Far Eastern New Century , Far Eastern International Bank and U-Ming Marine.