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Watchdog greenlights cement acquisition

By Liu Jie (China Daily)
Updated: 2007-05-19 09:55

China Lafarge Shui On Cement Ltd, Southwest China's largest cement manufacturer, has received final approval from the central government to acquireSichuanShuangma Investment Group.

In line with theacquisitionagreement, approved by theChina Securities Regulatory Commission, the country's securities watchdog, Shuangma cement plants in Jiangyou and Yibin of Southwest China's Sichun Province and other production facilities will join Lafarge Shui On.

Lafarge Shui On will keep Shuangma's workforce and upgrade the production facilities by replacing old technologies to reach Lafarge's environmental and safety standards.

According to Cyrille Ragoucy,CEOof Lafarge Shui On, the deal is a win-win for both sides.

"The combination of Lafarge Shui On's management experience and cement manufacturing technology knowledge with Shuangma's well-trained workforce and market position helps create a stronger leader in cement industry in both Sichuan and Southwest China," he said.

Lafarge Shui On is a joint venture established in 2005 between France-based Lafarge Group, a world leader in thebuilding materialsindustry and Shui On Construction & Materials Ltd, a subsidiary ofHong KongShui On Group.

It combines the advanced management expertise, technology and production experience of Lafarge and the rich market experience of Shui On. The company has five business units inBeijing, where it is headquartered, as well as Southwest China's Sichuan,GuizhouandYunnanprovinces andChongqingMunicipality, with 20 cement plants, 21-million-ton annual capacity and over 10,000 employees.

Shuangma, originally founded in 1956, has an annual capacity of more than 3 million tons of cement and is one of the largest cement manufacturers in Sichuanli.

(China Daily 05/19/2007 page10)