Hong Kong-based Socam Development said the Kaili government in Guizhou, China, is expected to compensate its subsidiary Shui On Cement with CNY171m (US$24.85m). The funds are to reimburse the costs and expenses related to the closure of its plant, which resulted from the central government's policy of phasing out of backward and energy-inefficient capacity, according to The Standard.
The cement plant site will be redesignated for commercial and residential purposes. The Kaili government plans to sell the site and the company intends to use the proceeds as general working capital.
