WCC West China

 

TIDMWCC 
 
RNS Number : 8680G 
West China Cement Limited 
09 February 2010 
 

West China Cement Limited 
 
Announcement of investment in Longqiao cement plant 
 
9 February 2010 
 
West China Cement Limited ("WCC" or the "Company") is delighted to announce an 
investment in the Longqiao cement plant, a facility with 1.1 million tones per 
annum capacity and limestone reserves which are sufficient to support this 
operation for well in excess of 30 years. 
 
The investment has been effected through the establishment of Shangluo Longqiao 
Yaobai Cement Co., Ltd. ("Longqiao Yaobai"). Shaanxi Danshui Construction 
Materials Co., Ltd. ("Shaanxi Danshui") an independent third party has injected 
assets of RMB337m into Longqiao Yaobai. Post the investment Longqiao Yaobai is 
owned as to 80% by Shaanxi Yaobai Special Cement Co., Ltd., a wholly-owned 
subsidiary of WCC, and 20% by Shaanxi Danshui. The investment has been financed 
by an injection of RMB100m by WCC into Longqiao Yaobai, payable in two tranches 
of RMB50m. Longqiao Yaobai will also assume Shaanxi Danshui bank debts of RMB50m 
and a shareholder loan from Shaanxi Danshui of RMB150m. 
 
The investment is subject to a number of conditions including the transfer of 
the mining licence, the transfer of the land use rights and the transfer of the 
cement production licence and, should these conditions be met, profits and legal 
ownership will pass to the Company, with effect from 31 December 2009. 
 
Longqiao Yaobai is located in Shangluo region, southern Shaanxi and employs 
modern NCPP technology. 
 
The investment in Longqiao Yaobai is financed by our internal resources. 
 
Commenting on the transaction, Jimin Zhang, WCC's Chief Executive Officer, said: 
 
"Longqiao Yaobai is another exciting opportunity for WCC.   This new 
establishment is part of our strategic expansion plans and its location some 60 
kilometers from Shangluo city, to the east of our Xiushan production facility, 
further enhances our market position in southern Shaanxi. " 
 
WCC's Chairman Robbie Robertson remarked: 
 
"The Longqiao plant is a particularly interesting investment as it serves the 
local Shangluo market allowing us to increase our market share in rural 
development projects, which will benefit from the PRC Government's rural 
stimulus plan aimed at improving livelihoods in rural areas" 
 
For further information, please contact: 
 
West China Cement Limited 
Anthony Schindler 
Tel: +44 7710178928 
 
NCB Stockbrokers Limited 
Christopher Caldwell 
Tel: +44 207 071 5234 
 
Citigate Dewe Rogerson Asia 
Pui Shan Lee 
Tel: + 86 21 6340 4186 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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