Portuguese cement company Cimpor buys majority stake in Chinese company

17 October 2006

Lisbon, Portugal, 17 Oct – Portuguese cement company Cimpor said Monday in Lisbon it had bought 60 percent of the Shandong Liuyuan New Type Cement Development Company for 2.1 million euros in cash.

In a regulatory statement Cimpor said that the acquisition of the cement company was carried out through subsidiary Cimpor Chengtong Cement Corporation (CCCC), 80 percent owned by Cimpor Inversiones and the remaining 20 percent by China Chengtong Cement Group (CCCG).

Once the acquisition of the Shandong Liuyuan New Type Cement Development Company goes through, which is subject to the authorization of the Chinese authorities, a capital increase of CCCC will be carried out raising it to 207.48 million Hong Kong dollars (around 21 million euros), with Cimpor injecting its part in cash and the Chinese shareholder handing over a stake of around 71 percent in the Suzhou Nanda Cement Company.

This company has a cement mill on the outskirts of Shanghai, with a production capacity of around 600,000 tonnes per year.

Shandong Liuyuan, which has been acquired, has a production capacity of 1.8 million tons of clinker and 1.2 million tons of cement per year.

According to Cimpor, in the medium-term capacity will be increased to 3.6 million tons of clinker and 4.5 million tons of cement, with the construction of two new production lines.

When the operations have been concluded, CCCC will have a production capacity of 5.1 million tons of cement in China.

Currently the Portuguese group has a total production capacity of around 24 million tons, in nine countries. (macauhub)