16 September 2005
HeidelbergCement extends its activities in China
HeidelbergCement Holding Hong Kong, a wholly owned subsidiary of Heidelberg Cement, signed agreements with the Chinese cement company Tangshan Jidong Cement on 16 September 2005, to form a 50-50 joint venture to produce and market cement in Shaanxi province of Northwest China.
Initially the joint venture will consist of the Fufeng cement plant with a planned production volume of approximately 1.8 million tonnes in 2005. In the near future the construction of a second plant will start near the province capital Xian. After completion of the new plant and optimization of the existing plant, the joint venture will produce approximately 4 million tonnes per year.
The joint-venture partner Tangshan Jidong Cement is among the top five cement producers in China. It operates 12 plants with a total annual cement capacity of 18 million tonnes. Its activities are concentrated in Northern China, especially Hebei province and Northeast China.
Heidelberg Cement has been active in the southern Chinese Guangdong province since 1995 through a 50-50 joint venture. China Century Cement has a total cement capacity of 5 million tonnes.
With the new joint venture HeidelbergCement is creating a second leg in China in a region with still substantial growth potential.