Hubei Firm Invests in Cement Grinding Production Line

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Researched by Industrial Info Resources (Sugar Land, Texas)--A Hubei cement company will invest $12.9 million to build a 1 million-ton-per-year cement-grinding production line. Qianjiang Cement Company (Qianjiang City, Hubei province) is a subsidiary of China Gezhouba Group Company Limited (SHA:600068) (CGGC) (Wuhan), which will increase its investment in Qianjiang Cement by $4.6 million to support further development, including the cement-grinding line.

Qianjiang Cement is now able to produce 200,000 tons of cement each year, and because of the outstanding environment, market and raw materials, CGGC decided to build a new production line, with a total investment value of $12.9 million.

The construction will take 10 months to finish, making the most of local raw materials in order to lower the cost. It is estimated that the investment will be recovered in less than seven years. The profit margin is expected to be 13.63%.

CGGC was founded in 1970 when elites in the hydroelectric field came together to build the Gezhouba Hydroelectric Project. After 30 years of development, the large-scale state-owned enterprise has expanded its business scope to include infrastructure construction, investment, hydro-electrical work, highways and real estate.

In March, Gezhouba Cement Company, another CGGC company, invested $72.5 million to build a 4,800-ton-per-day clinker project in Yicheng City in the Hubei province. When finished in March 2009, the Yicheng factory will produce 1.5 million tons of clinker and 1.91 million tons of cement, and consume 500,000 tons of industrial residue and fly ash every year.

In February, construction of a 2,500-ton-per-day dry cement production line started in Yichang, also invested in by Gezhouba Cement. The construction will be finished by the end of 2008 and will produce 775,000 tons of clinker and 1 million tons of cement, with 4,500 kilowatts of low temperature waste heat generating power and its own limestone mine.

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