CNBM completes business integration of cement sector, which will give birth to a new A-share listed


Updated 2022-01-11

On December 11, the China Building Materials Cement Business Integration Conference was held in Beijing. The integrated CNBM cement sector will give birth to a cement listed company with the largest business scale in the world and a market capitalization of 100 billion yuan

The business integration of cement sector is a concrete action taken by China National Building Materials Group to implement the requirements of the State-owned Assets Supervision and Administration Commission of the State Council and the China Securities Regulatory Commission, to resolve horizontal competition, and fulfill capital market’s promise. It is a strategic deployment to further optimize the business layout of basic building materials and promote high-quality development. It is a significant measure to deepen the reform of state-owned enterprises and to build a world-class enterprise with international competitiveness. It is also highly compatible with the themes of the times such as supply-side structural reforms.

A reporter from Securities Daily learned from the scene that in this integration, CNBM Group has injected 100% equity of China United Cement, 99.93% equity of Southwest Cement, 95.72% equity of Southwest Cement, and 100% equity of Sinoma Cement, which are its high-quality cement companies, into the listed company, Tianshan Cement (Tianshan Cement is currently in the process of applying for a name change), with a transaction scale of 98.1 billion yuan, which is the largest project of purchases of assets through issuing shares in the history of A-shares. This integration business was launched in July 2020, and the newly issued 7.3 billion new shares has been listed on the Shenzhen Stock Exchange in November 2021.

After the integration, the new Tianshan Cement has a market value of approximately 120 billion yuan, with a clinker production capacity of approximately 300 million tons, a commercial concrete production capacity of approximately 400 million cubic meters, and an aggregate production capacity of approximately 150 million tons. In addition, there are 10 cement, commercial concrete and aggregate business integration companies, and 4 commercial concrete and aggregates and special cement business specialized companies. It is the world's largest cement company with a complete industrial chain and a national layout.

Zhou Yuxian, Secretary of the Party Committee and Chairman of CNBM Group, and Secretary of the Party Committee and Chairman of China National Building Materials Corporation, pointed out that the cement sector is a very important business sector of CNBM Group. The cement business accounts for the largest profit contribution and it is the group's ballast business.

The cement companies of the groups represented by China United Cement, Southern Cement, Southwest Cement, Sinoma Cement, and Tianshan Cement have steadily promoted joint reorganization, management integration, reform and innovation, and optimization and upgrading. They have achieved their own leap-forward development and promoted healthy growth for the industry. After the integration, the synergy and core competitive advantages of New Tianshan Cement will be further highlighted, and the profitability, comprehensive competitiveness and sustainable development capabilities will be further enhanced. As the world’s largest cement company, New Tianshan Cement’s strategic positioning is to build a world-class cement company, to lead the development of the global cement industry, to achieve first-class economic and technical indicators, first-class comprehensive competitiveness, first-class sustainable development capabilities, and be able to export management and export standards , and to become the industry benchmark in all aspects.

Chang Zhangli, Deputy General Manager of CNBM Group, President of China National Building Material Co., Ltd., and Chairman of New Tianshan Cement, stated that New Tianshan Cement will clarify its missions, responsibilities and strategic goals, seize opportunities in the new era, take advantage of the situation, and make active efforts to build a world-class Cement companies: to improve political positions, implement political, economic, and social responsibilities of central enterprises; to focus on value creation, with a three-year dividend ratio of not less than 50% of the available distribution, and establish a good image of a listed company of central enterprises; based on reform and innovation, to be a good engine for the group's high-quality development; to play the leading role in the industry and promote mutual benefit, sharing and win-win.

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