Jilin Yatai buys Tiexin Cement for RMB 249m

Byswb

Updated Tue, 19 Oct 2010 00:00:00 GMT

Jilin Yatai (Group) Co Ltd<600881> on Oct. 16 said it will spend RMB 249 million to acquire a cement company, which is based in Tieling, Liaoning Province and suffered losses of RMB 45.56 million in the first half of this year.

Established in 2003, the target firm, which owns two cement production lines with a daily output of 5,000 tons and 25,000 tons respectively, produced 1.31 million tons of cement and 2.2 million tons of clinker in 2009.

The target cement producer, which has a registered capital of RMB 246 million, had RMB 1.32 billion in total assets as of end of the June, and its strategic location is good for cement market expansion, said the Shanghai-listed buyer without elaborating other details.

Jilin Yatai's net profit for the first half of this year declined nearly 30% year on year to RMB 241 million, and its operating profit was RMB 331 million, down 12% year on year.