Portugal: Portugal’s Cimpor to invest 100 million euros in China

12 November 2007

Lisbon, Portugal, 12 Nov – Portuguese cement company Cimpor – Cimentos de Portugal plans to invest 100 million euros on building a clinker and cement factory, in Shanting, under the terms of an agreement valid for 50 years signed with the government of that district of China’s Shandong province.

A statement published Friday in Lisbon on Cimpor’s website said that the agreement signed would be carried out by Chinese subsidiary, Shandong Liuyuan New-Type Cement Development (NLG).

The investment will be carried out in two stages: in the first stage, which is expected to be concluded at the beginning of 2009, a 5,000 ton/day clinker production line will be built and once certain conditions set by the district government have been checked, a second identical production line will be built.

The commitments made by the Chinese authorities include granting NLG certificates for use of the land for building the factory, the concession of rights and licenses for exploration of quarries near the factory and building all facilities, namely in terms of access roads and water and power supply.

After production is launched on the first line, the Shanting government will move ahead with the policy defined by the Chinese Central Government for closing factories located in that district operating with vertical oven technology, which leads to severe environmental pollution.

With this project, Cimpor will significantly improve its activities in China, namely in Shandong province and in the areas surrounding Shanghai, increasing production from 1.8 million tons per year to over 5 million tons per year. (macauhub)