Anhui Conch Cement Co Ltd, one of China’s leading cement producers, said its board has approved a proposal allowing two units to acquire assets in two joint ventures in the southwestern province of Guangxi for 539.7 mln yuan. One of Anhui Conch’s units, Xingye Kuiyang Conch Cement Co Ltd, will pay 267.07 mln yuan (approx US$32m) to buy assets from Guangxi Xingye Conch Cement Co Ltd -- one of the joint ventures. The other unit, Fusui Xinning Conch Cement Co Ltd, will pay 272.66 mln yuan (approx US$33) to joint venture Guangxi Fusui Conch Cement Co Ltd.
After the transactions, Anhui Conch’s annual cement production capacity will increase by 3.2Mt while clinker production capacity is expected to rise by 3Mt. Cement production capacity last year was 42Mt and clinker production capacity was 36.5Mt. Anhui Conch’s first quarter net profit fell 95.11 per cent to 21.66 mln yuan (US$2.6m) from a year earlier on lower cement prices and higher coal costs.
