Tianshan Cement To Rise 2.8B Yuan For Xinjiang Expansion

Byyyp

Updated Thu, 12 Jan 2012 00:00:00 GMT

Xinjiang Tianshan Cement (000877) plans to issue up to 120 million shares at 20.64 yuan per share in order to raise a maximum of 2.8 billion yuan for expansion in Xinjaing, reports stcn.com, citing a company filing.

Proceeds raised will be invested in five cement production facilities, including the expansion of two 4,000 t/d cement production lines, in Kashgar and Yecheng in Xinjiang province.

In addition, the cement producer wlll invest in a cement grinding plant with capacity of one million tons per year.

According to the report, the projects are located in regions with the strongest development potential in Xinjiang, such as  Wuchang, Kashgar, Turpan, and Hotan.

The investments are forecast to handle 190,000 tons of mud from urban regions,  and absorb 720,000 tons of acetylene sludge year.

The company's clinker production capacity in Kashgar will increase by 2.48 million tons per year, while that of cement will be raised by 3.73 million tons.

Tianshan Cement's clinker production capacity in Hotan will rise by 992,000 tons per year, while its cement production capacity will increase by 1.36 million tons.

Tianshan Cement said the investments were to take advantage of Xinjaing's rapid development.

Including the aforementioned investments, the company will have a total of 16 cement production lines that it plans to build, or are currently under construction.

The company is projected to have total production capacity of 46 million tons by the end of 2013, of which 92 percent will consist of products made using the new dry-process cement production method.

By the end of the 12th Five-Year Plan, the company expects to have total production capacity of 50 million tons.

Shares of Tianshan Cement fell 1.12 percent to trade at 22.05 yuan per share at 14:42 today.