AIM-listed West China Cement (WCC) has acquired Xiushan Cement (Group) for RMB 180 million (£16.4 million).
AIM-listed West China Cement (WCC) has acquired Xiushan Cement (Group) for RMB 180 million (£16.4 million).
The acquired business comprises the Xiushan cement plant in Shaanxi Province, with a capacity of 600,000 tonnes per year, and the Xunyang Xiushanlong cement milling facility, which can process 100,000 tonnes of slag. The company generated pre-tax profits of RMB 23.8 million in 2008.
The deal is the first acquisition for WCC since joining AIM in December 2006, raising £22 million.
WCC chairman Robbie Robertson said that the acquisition is the first step in achieving the company’s growth strategy, and that the deal would increase the group’s capacity to 8 million tonnes in 2010.
In the six months ending June 2009, WCC reported a rise in revenue of 70 per cent to RMB 575 million, while operating profits increased 121 per cent to RMB 225.2 million.
