Announcement of investment in Longqiao cement plan
09/02/2010 7:31am
UK Regulatory
TIDMWCC
RNS Number : 8680G
West China Cement Limited
09 February 2010
West China Cement Limited
Announcement of investment in Longqiao cement plant
9 February 2010
West China Cement Limited ("WCC" or the "Company") is delighted to announce an
investment in the Longqiao cement plant, a facility with 1.1 million tones per
annum capacity and limestone reserves which are sufficient to support this
operation for well in excess of 30 years.
The investment has been effected through the establishment of Shangluo Longqiao
Yaobai Cement Co., Ltd. ("Longqiao Yaobai"). Shaanxi Danshui Construction
Materials Co., Ltd. ("Shaanxi Danshui") an independent third party has injected
assets of RMB337m into Longqiao Yaobai. Post the investment Longqiao Yaobai is
owned as to 80% by Shaanxi Yaobai Special Cement Co., Ltd., a wholly-owned
subsidiary of WCC, and 20% by Shaanxi Danshui. The investment has been financed
by an injection of RMB100m by WCC into Longqiao Yaobai, payable in two tranches
of RMB50m. Longqiao Yaobai will also assume Shaanxi Danshui bank debts of RMB50m
and a shareholder loan from Shaanxi Danshui of RMB150m.
The investment is subject to a number of conditions including the transfer of
the mining licence, the transfer of the land use rights and the transfer of the
cement production licence and, should these conditions be met, profits and legal
ownership will pass to the Company, with effect from 31 December 2009.
Longqiao Yaobai is located in Shangluo region, southern Shaanxi and employs
modern NCPP technology.
The investment in Longqiao Yaobai is financed by our internal resources.
Commenting on the transaction, Jimin Zhang, WCC's Chief Executive Officer, said:
"Longqiao Yaobai is another exciting opportunity for WCC. This new
establishment is part of our strategic expansion plans and its location some 60
kilometers from Shangluo city, to the east of our Xiushan production facility,
further enhances our market position in southern Shaanxi. "
WCC's Chairman Robbie Robertson remarked:
"The Longqiao plant is a particularly interesting investment as it serves the
local Shangluo market allowing us to increase our market share in rural
development projects, which will benefit from the PRC Government's rural
stimulus plan aimed at improving livelihoods in rural areas"
For further information, please contact:
West China Cement Limited
Anthony Schindler
Tel: +44 7710178928
NCB Stockbrokers Limited
Christopher Caldwell
Tel: +44 207 071 5234
Citigate Dewe Rogerson Asia
Pui Shan Lee
Tel: + 86 21 6340 4186
This information is provided by RNS
The company news service from the London Stock Exchange
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