Contract Wins

 

TIDMWCC 
 
 
West China Cement Limited 
09 June 2009 
 
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For 7am Release  09 June 2009 
 
 
West China Cement Limited (AIM:WCC) 
 
 
Contract Wins 
 
 
Shitian Expressway and Baotou - Xi'an Railway Line 
 
 
West China Cement Limited ("WCC"), the AIM listed cement production and sales 
company located in Shaanxi Province, China, is pleased to announce it has won 
contracts on two projects in the area. 
 
 
Shitian Expressway 
 
 
The more significant of the two is winning the majority of contracts up for 
tender for the Shitian Expressway project. As at 31 May 2009, Shitian Expressway 
had opened 64 tender sections, 51 of which are in Ankang Section and 13 in 
Hanzhong Section. WCC won 43 contracts in Ankang and 11 in Hanzhong, resulting 
in an overall number of 54 contracts obtained so far, an impressive 84% of the 
total sections up for tender. There are another 25 sections within Hanzhong 
region that are yet to be opened for tender. This accomplishment can be credited 
to the experienced WCC team, the reputation of the Company, and the market share 
and advantageous geographical locations in which WCC operates. 
 
 
The Shitian Expressway is of great importance as it links Central China and 
North Western China. It runs from Shiyan in Hubei Province to Tianshui in 
Gansu Province, passing across 11 counties in southern  Shaanxi Province, 
linking Ankang and Hanzhong. The total mileage is 750 km, of which 480 km is in 
Shaanxi Province. 
 
 
Construction of the Expressway commenced in late 2008 and is expected to open to 
traffic in 2011. The estimated cement consumption for the sections that fell 
within WCC's sales radius is 3 million tonnes, with 1 million tonnes per section 
needed specifically for Ankang West Section, Ankang East Section  and  Hanzong 
Section respectively. 
 
 
An investment of RMB 32 billion (GBP2.8 billion) has been allocated for this 
project and given its scale and breadth, it will be instrumental in facilitating 
provincial productivity distribution and economic development. 
 
 
Baotou - Xi'an Railway Line 
 
 
On 1 June 2009, biddings for three sections of the Baotou - Xi'an Railway Line 
took place. WCC tendered for the one section running through the Weinan region, 
where WCC's Pucheng plant is located and consequently was awarded this section. 
The estimated cement consumption for this section is approximately 600,000 
tonnes. 
 
The line will be 935 km long and will connect Baotou in Inner-Mongolia and 
Xi'an in Shaanxi Province. The sections that were opened for bidding stretch 
from the Yulin region in Northern Shaanxi to the Weinan region. 
 
 
Commenting on the projects, WCC's Chief Executive Officer Jimin Zhang said: 
 
 
"I am delighted with the wins on both projects. The high percentage of Sections 
on the Shitian Expressway that have been awarded to us is a result of the 
determination of our successful team at WCC. These are significant projects for 
the Provinces involved with large scale investment which will enhance 
productivity distribution and economic development for all the regions involved 
and beyond." 
 
 
 
 
For further information, please contact: 
 
Citigate Dewe Rogerson 
Pui Shan Lee     Tel: + 86 21 6340 4186 / Mob: + 86 138 1712 5781 
 [e-mail] 
 
 
Susanna Gale    Tel: + 852 2533 4607 / Mob: + 852 9457 4356 
 [e-mail] 
 
 
Notes to Editors: 
 
 
West China Cement listed on the AIM market of the London Stock Exchange on 4 
December 2006, raising approximately GBP20.1 million net of expenses. 
 
 
Prior to the listing, the Company, which is headquartered in Xi'an the 
provincial capital of Shaanxi Province, had operated three cement production 
plants in Pucheng with a combined production capacity of 1.5 million tonnes per 
annum since 2003. 
 
 
In order to service the growing demand for cement in the region, a new plant 
running two cement production lines, funded by money raised at the IPO, opened 
in Lantian in 2007 and has a production capacity of 2 million tonnes. 
 
 
The company's 1.8 million tonne third plant at Ankang started producing and 
selling cement in March 2009 and is expected to reach full capacity in the 
second half of 2009. 
 
 
Approval for the building of two new cement plants, Yangxian and Mianxian, each 
with a capacity of 1 million tonnes per annum, was announced in March 2009. With 
the massive government spend on infrastructure as part of the RMB 4 trillion 
fiscal stimulus package and the need to rebuild in the wake of the Sichuan 
earthquake which occurred in this area, the Company has chosen the appropriate 
location to build these latest projects. 
 
 
 
 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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