Anhui Conch sets up for Sichuan rebuild
Top Chinese cement producer Anhui Conch Cement (0914) plans to speed up capacity expansion in the aftermath of the most devastating earthquake to hit the country in decades, filling a need with Beijing expected to launch a multibillion-dollar reconstruction effort.
The company now plans to invest up to 5 billion yuan (HK$5.56 billion) to build three new plants in Sichuan province - one in the city of Guangyuan and two in Dazhou - with a total capacity of 12 million tonnes a year by 2010, executive director Guo Jingbin said.
"There will be a huge amount of reconstruction works after the earthquake, and this will boost demand for cement," Guo said. "Beijing will lift standards for building nationwide. We could see that old buildings and roads cannot survive a major tremor."
Anhui Conch also plans to expand to other parts of western China, including the city of Chongqing and the provinces of Gansu, Guizhou and Shaanxi. In all, its western expansion could boost the company's capacity by 50 million tonnes in the next three to five years and cost 15 billion yuan, Guo said.
Guo expects sales in the shorter term to rise about a fifth to more than 120 million tonnes in 2009 from more than 100 million this year. The firm sold 86.5 million tonnes of cement and clinker last year, exporting 15.8 percent. REUTERS