Displaying items by tag: West China Cement

China/Italy: Italcementi has sold its 5.24% stake in West China Cement for Euro39m. The price is subject to further adjustment, the group said in an announcement on 18 September 2015. Italcementi has sold the stake through its CimFra Limited subsidiary in China, and said the transaction would have no impact on earnings before interest, tax, depreciation and amortisation (EBITDA) generation capacity at group level.

China: West China Cement's net profit plunged by 99% year-on-year to US$375,120 in the first half of 2015 as China's economic slowdown took a toll on cement demand, according to Dow Jones. West China Cement's revenue fell by 15.4% to US$264m. As for 2014, it omitted an interim dividend.

China: According to Dow Jones, West China Cement expects to report a 'significant decrease' in net profit for the six months that ended on 30 June 2015, compared with the US$25.8m net profit for the six months that ended on 30 June 2014. West China Cement said that the anticipated decline is mainly tied to the low average selling price of cement in the past 12 months. It added that it was unable to maintain 'reasonable selling prices and healthy margins' in the southern part of Shaanxi.

Zambia/China: Chinese firms have made a commitment to accelerate investment in Zambia under agreements valued at a combined US$800m. The deal was signed by the Zambia-China Economic and Trade Cooperation Zone and 11 companies in Beijing. One of the 11 Chinese firms is West China Cement Ltd, which will set up a cement plant in the zone.

"Zambia hopes to attract more Chinese investors and tourists to improve economic development," said Zambian president Edgar Lungu, adding that his government will provide 'strong support' to Chinese companies. Zan Baosen, general manager of the zone, said that Zambia offers many incentives to Chinese companies. "We are eager to cooperate with Chinese entrepreneurs to explore the market potential in Zambia," he said.

China: West China Cement Ltd said that Tian Zhenjun has resigned as CEO and has been replaced by Ma Weiping, who will also take on the role of an executive director. It also said that Low Po Ling has resigned as deputy CEO. Tian and Low both confirmed they have no disagreement with the board.

China: West China Cement has reported that its gross profit fell by 23.7% to US$109m in 2012 from US$142m in 2011. The Chinese cement producer attributed the shortfall on a decreasing selling price, increases in electricity costs and higher overheads due to lower productivity.

The company's revenue rose by 10.5% to US$567m from US$513m. Earnings before interest, taxes, depreciation and amortisation (EBIDTA) fell by 9% to US$170m from US$187m. Cement sales volumes rose by 22% to 14.3Mt in 2012 from 11.7Mt in 2011.

In its annual report West China Cement reported that it is consolidating its position as the largest cement producer in Shaanxi Province as well as expanding into Xinjiang Province, where economic and infrastructure growth promoted by the Chinese government's Western Development Policy remains a key feature of the 12th Five-Year Plan. For 2013 the company expects the recovery in infrastructure demand in the second half of 2012 to continue. However, increased overall capacity in Xinjiang Province is expected to continue impacting upon cement prices in that region.

Production: China saw cement output increase by 10.8% year-on-year to 237Mt in the first two months of 2013, according to recent data released by the National Bureau of Statistics.

45 companies in Xinjiang Uyghur Autonomous Region produced a total 466,000t of cement and 2.67Mt of clinker in the first two months of 2013, a year- on-year decrease of 9.28% and 37.27% respectively, according to sources quoted by China Business Newswire.

Guangdong Province produced 118Mt of cement in 2012.

Company news: China Shanshui Cement has reported that its net profit fell by 31.8% to US$245m in 2012. Its revenue fell by 4.2% to US$2.6bn in 2012. Total sales volume of cement and clinker rose by 3.5% to 56.9Mt. It attributed the decrease in net profit to the fall of selling prices as a result of decline in demand.

West China Cement has reported that its net profit rose by 44.9% to US$57.9m in 2012. Operating revenue grow by 10.5% to US$566m. The company saw cement sales rise by 22.2% to 14.3Mt.

Fujian Cement has reported a slump in net profit of 76.9% to US$4.63bn in 2012. Operating revenue fell by 13.7% to US$261m. The company expects to earn US$359m in operating revenue in 2013.

Gansu Qilianshan Cement Group sold 15.3Mt of cement and cement clinker in 2012, a year-on-year increase of 29.2%. Currently the company has a cement production capacity of 21.3Mt/yr and it aims to reach a capacity of 45Mt/yr by the end of 2015. Gansu Qilianshan Cement Group Co has announced in its annual report for 2012 that the company saw its net profit drop by 47.8% year-on-year to US$28m in 2012. The company's operating revenue rose by 17.28% year-on-year to US$684m in 2012.

Xinjiang Tianshan Cement Co Ltd has reported that it saw net profit drop by 71.8% year-on-year to US$51.3m in 2012. The company attributed the net profit drop to overcapacity in the cement industry in 2012. Tianshan Cement's operating revenue for 2012 fell by 6.99% year-on-year to US$1.24bn.

Shenzhen-listed cement producer, Sichuan Shuangma Cement Co has announced that it earned a net profit of US$1.37m in 2012, a year-on-year decline of 90%. The company's operating revenue for 2012 decreased by 8.3% on-year to US$301m.

China: The chairman of West China Cement, Zhang Jimin, has said that West China's production capacity reached 23Mt/yr in 2012. Zhang added that the group plans to invest US$321m through mergers and acquisitions to increase production capacity to 30Mt/yr by 2015.

Hebei Province-based cement producer, Tangshan Jidong Cement has said that the company plans to set up a joint-venture (JV) with two cement firms in Mizhi County, Shaanxi-province. The JV will build a 2000t/day cement-clinker production line to expand the local cement market. Jidong Cement will pay US$15.7m for a 61% stake in the JV, which will have a registered capital of US$25.7m.

China Resources Cement Holdings, the largest cement producer in South China, said that its investment subsidiary will set up a JV with a local cement company in An'shun City, Guizhou province. The JV will have a registered capital of US$45m. China Resources Cement will invest US$28.1m in cash to hold a 62.5% stake in the JV while in the first phase, the An'shun company will take a 37.5% stake by providing properties and other assets worth US$17m. After completion, China Resources Cement will spend US$7.86m buying a 17.5% stake in the JV from the An'shun company, increasing its stake in the JV to 80%.

China: West China Cement's net profit has fallen by 64.6% to US$23.4m in the first half of 2012. The cement producer's revenue dropped by 7.2% to US$250m in the same period.

Yet West China Cement expects better profits and revenue in the second half of 2012 as production capacity rises by up to 50%. "Our production costs will go down as our scale increases," said company chairman Zhang Jimin. "Our gross margin will rise in the second half. With selling prices and sales volume rising, our profits and revenue will increase." Zhang added that the company's cement sales would be boosted by infrastructure projects in Shaanxi province, including the Datong-Xian high-speed-rail project and the second Xian-Ankang rail project.

On 8 August 2012 US 'short seller' Glaucus Research Group accused West China Cement of fraud, inflated profits and suspicious acquisitions. West China Cement executive director Low Po Ling said that her company was consulting its lawyers and that is had reserved the right to take legal action against Glaucus. Low said that since the Glaucus report came out, Italcementi Group, West China Cement's third-biggest shareholder, had held discussions three or four times with the mainland company. "Italcementi was very unhappy. It will issue a statement," said Low.

France: Italcementi subsidiary, Ciments Français, has agreed to acquire a 6.25% stake in West China Cement (WCC) becoming one of the main shareholders of the Chinese group.

The agreement foresees the sale to WCC of 100% of the share capital of Shaanxi Fuping Cement Company (Fuping Cement) acquired by the Italcementi Group in 2007 against the subscription of a reserved capital increase of WCC. Fuping Cement in turn also owns 35% of the share capital of Shifeng Cement acquired in 2010. Under this agreement, Ciments Français will own a 6.25% stake in the Chinese group, becoming the third largest shareholder of WCC. Ciments Français will be represented with one member on the Board of Directors of WCC.

The transaction is based on a valuation of Fuping equal to approximately Euro87m gross of the net financial debt of the company, approximately Euro26m of which will be deconsolidated. Ciments Français will underwrite 284.2 million shares of WCC at the price of Euro0.216/share.

WCC, a holding company listed in Hong Kong since 2010 with a current market capitalisation of approximately Euro780m, has a total production capacity of approximately 20Mt/yr in Shaanxi and Xinjiang, which will grow before the end of 2012 to 24Mt/yr produced in 15 cement plants (including Fuping Cement and Shifeng Cement). In 2011 WCC reported net revenues close to Euro380m and a net profit of approximately Euro80m.

The transaction, which is subject to the approval of the competent Chinese authorities, is expected to close by the end of the second quarter of 2012.