China: West China Cement has agreed to acquire the entire equity interest of Tongchuan Yaowangshan Ecological Cement Co Ltd as well as shareholder's loan of US$121m. The Yaowangshan cement plant in Yaowangshan, Tongchuan, Shaanxi has 2.2Mt/yr of cement production capacity.
China Conch Venture and Red Day Limited, which is owned by West China Cement's Non-executive Director Ma Zhaoyang, agreed to inject US$14.2m and US$4.73m into Xi'an Yaobai Environmental Technology Engineering Co Ltd. Upon completion, Yaobai Environmental will be 60% owned by Conch Venture, 20% by Red Day and 20% by West China Cement.
West China Cement expects to record a US$63,096 loss as a result of the transactions. The parties agreed to develop Yaobai Environmental into the only platform for the treatment of dangerous and hazardous waste for the parties within China. West China Cement believes that the investments from Conch Venture and Red Day, which will provide additional financial resources to Yaobai Environmental, is an important step towards this goal and paves the way for further collaboration among the parties.
