Gansu Qilianshan to invest RMB 482 mln in Northwest China

Byyyp

Updated Mon, 07 Jun 2010 00:00:00 GMT

Gansu Qilianshan Cement Group Co Ltd<600720> with its subsidiary will jointly inject RMB 482 million into Hongda Building Materials, an arm controlled by Jiuquan Iron & Steel (Group) Co Ltd or JISCO, according to an agreement signed by the Shanghai-listed firm and JISCO on May 28.

After the injection, Gansu Qilianshan Cement and subsidiary Yongdeng Qilianshan Cement will each hold a 30% stake in the target firm, whose registered capital will increase from RMB 54.69 million to RMB 137 million.

Tan Zhongming, board chairman of China National Materials Group Corp Ltd or Sinoma, parent of the listed company, said that Sinoma's cement output capacity will hit 100 million tons at the end of 2011.

The target firm Hongda Building Materials, which currently has two cement production lines with a daily output of 3,000 tons in total, will build a 5,000-ton production line that will be completed by the end of 2011. The firm targets 3,000-ton cement output for 2012.

Besides Gansu Qilianshan Cement Group, Sinoma owns another two listed Northwest China-based cement subsidiaries Xinjiang Tianshan Cement Co Ltd<000877> and Ningxia Saima Industry Co Ltd<600449>, and the large parent's share of cement market is about 40% in Xinjiang Uygur Autonomous Region, 60% in Ningxia Hui Autonomous Region and 40% in Gansu Province.