Anhui Conch - January 2019

On 3 January 2019 Anhui Conch entered into a cement sale and purchase agreement with Jiangsu Conch Building Materials, a non-wholly-owned subsidiary of Anhui Conch. Under the contract, which runs until 31 December this year, certain subsidiaries of Anhui located in east China will sell around 7.5Mt of cement products to Jiangsu. The aggregate transaction amount is estimated to be around CNY2.5bn (US$368m).

The two companies also entered into a procurement of materials contract over the same period. Under this arrangement, three Anhui subsidiaries in the Shanghai region will procure approximately 130,000t of fly ash and 70,000t of desulphurisation gypsum from Jiangsu with the transaction amount believed to come in at US$3.1m.

These latest deals follow a similar arrangement for Anhui to sell cement to Jiangsu in 2018.