Shanshui Cement warns of ‘significant’ loss in 2015

Byjirong

Updated Thu, 17 Mar 2016 17:10:38 GMT

China: Shanshui Cement has issued a profit warning, predicting a significant loss in 2015 compared to 2014. It has blamed the impending financial result on poor market demand for cement, industry production overcapacity and management distractions with legal proceedings the company has undertaken concerning the company and its subsidiaries.

In late January 2016 Shanshui Cement defaulted on a US$270m bond. The default followed a battle for control of the company between Tianrui Cement, its biggest shareholder, and the Zhang family, its second-largest shareholder and former owners.

It has blamed the impending financial result on poor market demand for cement, industry production overcapacity and management distractions with legal proceedings the company has undertaken concerning the company and its subsidiaries.

In late January 2016 Shanshui Cement defaulted on a US$270m bond. The default followed a battle for control of the company between Tianrui Cement, its biggest shareholder, and the Zhang family, its second-largest shareholder and former owners.