HeidelbergCement is jointly funding the construction of a modern, environmentally-friendly cement works in Guangzhou, southern China. It teams up with Hong Kong-based Yue Xiu Enterprises Holdings to form Fangzheng Cement Co, which will hold 90 per cent of the shares while the remaining 10 per cent will be held by Guangzhou Cement Company. Investors already in place will fund 55 per cent of the total cost while bank loans will take the remainder.
The new RNM1bn plant will cover nearly 52ha and will be located in the Maxi industrial zone, Huadu district, far from residential areas, in response to constant objections from nearby residents with regard to air pollution from the old 1Mt works. The plant will boast a dust disposal density of below 50mg/m3, well below the national standard of 100mg/m3.
The new plant is scheduled to come onstream in the first half 2005 with a design capacity of 2.3Mta.
