Beijing Company to Invest in Cement Factory

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Researched by Industrial Info Resources (Sugar Land, Texas)--Beijing BBMG Group Company Limited has signed an agreement with the government of Hebei County to invest more than $100 million to build a cement factory. BBMG plans to begin construction soon on Phase I, which includes a 2,500-ton-per-day clinker production line, in Zanhuang County of Hebei Province's Shijiazhuang City.

After Phase I is finished in June, construction on a 5,000-ton-per-day clinker production line will begin. The second production line, which is expected to be ready to run before the end of next year, will enable BBMG to produce 3 million tons of cement in 2009.

BBMG had acquired Luquan Dongfang Zenith Cement Company Limited (Shijiazhuang), and the two BBMG factories will produce 8.5 million tons of cement.

After buying out Zenith, BBMG invested $18 million to renovate the factory, which now annually produces 620,000 tons of clinker; 600,000 tons of cement; 98,800 tons of product clinker; 500,000 tons of PO42.5 Portland cement; and 100,000 tons of PO32.5 Portland cement. Environmental investment made up about 11%.

BBMG will also invest up to $411 million in construction materials in Shijiazhuang.

BBMG combines industrial products manufacturing, real estate development, construction and modern services. The group has nearly 100 subsidiaries, 43 of which are set up with foreign investors. BBMG's total assets amount to about $1.4 billion with annual sales of about $833.9 million.

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