Anhui to spend $1.8b
Mainboard-listed Anhui Conch Cement has approved a two billion yuan plan (about HK$1.87 billion) to expand production capacity.
The expansion will be carried out by subsidiary Anhui Tongling, of which the cement and commodity clinker maker owns 68.2 per cent.
Under the proposal, Anhui Tongling will upgrade and expand two large-scale dry-process clinker production lines.
After the expansion, Anhui Tongling would have nine million tonnes of annual clinker production capacity, up from 2.7 million tonnes.
The subsidiary plans to tap internal resources for 726.13 million yuan of the expansion's costs, while the remaining 1.27 billion yuan will come from bank borrowings.
The company said the increased capacity would allow it to supply clinker to grinding mills it had established in cities along the Yangtze River and the eastern coast of China.
The proposal is subject to shareholder and government approval.
