2 July 2007

HeidelbergCement commissions new cement plant in China

HeidelbergCement has commissioned the new Jingyang cement plant in the Chinese province of Shaanxi. The plant is excellently situated near the provincial capital Xian, the primary market of the province, which has 36 million inhabitants. Jingyang was established with a total investment of approximately EUR 60 million in a greenfield development. It is equipped with the most modern, environmentally friendly technology and has a cement capacity of 2.3 million tonnes. Large, high-quality raw material deposits ensure long-term operation and further expansion possibilities for the plant, which currently has 300 employees.

Jingyang’s special feature is the planned construction of a plant generating its own power. The waste heat from the kiln will be used to generate electricity. It is estimated that the low-temperature power plant will cover more than one third of the electricity requirements. This system will be first of its kind in a cement plant in Shaanxi and the second in the HeidelbergCement Group.

“With the commissioning of this ultramodern plant, we are expanding our market position in the important growth region around the provincial capital Xian”, stressed Dr. Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement, during the opening ceremonies for the new plant, where high government and provincial officials also participated. “Our goal is to reach the market leadership in this thriving province of Central China. The new construction is part of our strategy of targeted expansion of our cement activities in growth countries. China is one of the cement markets with the strongest growth in the world, and HeidelbergCement — with its manufacturing plants and high-quality products — will also contribute to the further prosperous development of the country in the future.”

HeidelbergCement is operating the new plant in a joint venture with Jidong Cement, one of the largest cement manufacturers in China. The joint venture, established in 2005, includes the Fufeng cement plant, also located in the Shaanxi province. Both plants have a combined cement capacity of 4.3 million tonnes. After further expansions, our total cement capacity will increase up to around 10 million tonnes in the Shaanxi province by the end of 2008.

HeidelbergCement has been present in China since 1995 and operates eight cement plants and one grinding facility with a cement capacity of around 13 million tonnes in three Chinese provinces (Guangdong, Shaanxi, Liaoning). Also in China, HeidelbergCement gears itself towards the usual Group-wide environmental protection standards and targets. For example, the consumption of finite fossil fuels such as coal and oil is reduced through the intensified use of alternative fuels.

Caption image 1:
The new Jingyang cement plant in the Chinese Shaanxi province has a cement capacity of 2.3 million tonnes.

Caption image 2:
Opening ceremonies for the new plant, where Dr. Bernd Scheifele (in the centre) and high government and provincial officials participated.

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Andreas Schaller

Group Spokesman, Director Group Communication & Investor Relations
+49 6221 481 13249
+49 6221 481 13217
HeidelbergCement AG
Berliner Straße 6
69120 Heidelberg