SINOMA Plans Investment in Cement Factory in Guangdong

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Researched by Industrial Info Resources (Sugar Land, Texas)--SINOMA Cement plans to invest $202.7 million in a cement factory in Luoding City of Guangdong Province. The cement company, a subsidiary of China National Materials Group Corporation (SINOMA) (Beijing), signed the agreement with Luoding municipal authorities on January 4, 2008. The agreement still needs to go through final procedures. According to the agreement, SINOMA Cement will build three cement production lines, and the $202.7 million investment is a minimum requirement. Construction of the production lines will be finished in five years. Each production line will generate about 5,000 tons per day, totaling about 6 million tons of cement clinker. Construction is expected to begin this year.

Luoding City, a neighbor to the Guangxi Autonomous Region, will provide transportation, electricity, land and other necessities. Until July 2007, SINOMA owned 17 new dry process cement production lines, producing 17 million tons of cement every year. The new production lines will increase the total capacity by 35%. SINOMA also plans to bring in new technology, new equipment and expand its market in southern provinces with the new factory.

A day before for the agreement was signed, SINOMA signed another agreement that could enable it to become the main shareholder of Jidong Cement (Tangshan City, Hebei Province) and invest at least $1.8 billion from 2008 to 2010 to raise the capacity of Jidong to 130 million tons per year, as China's biggest cement company. This agreement, signed with Tangshan's municipal government, could stop SINOMA's main rival, China National Building Material Group Corporation (Beijing), to establish a cement conglomerate with Jidong in northern China.

China has set plans to eliminate small cement factories, which have been a major source of pollution. At the end of 2005, about 5,000 firms made up China's fragmented cement industry of which one-fourth are set to be shut down.

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