Western Cement plans to build a new cement production line in Ethiopia!

Western Cement (02233. HK) announced that its wholly-owned subsidiary Western International acquired direct and indirect equity interests in NCSC in March and July this year. On September 7, it subscribed for new ordinary shares of NCSC at a price of US $170 million (approximately HK $1.326 billion). Upon completion of the subscription, the Company holds an aggregate direct and indirect interest of 61.9% in NCSC.

NCSC is a company incorporated and registered in Ethiopia and is principally engaged in the production and sale of cement, limestone and related products. It is stated in the section of Reasons for and Benefits of the Transactions in the

Announcement that, taking into account the future economic development and construction project planning in Ethiopia and the current imbalance between cement supply and demand, the Group is optimistic about the future growth potential of cement in the Ethiopian market in the long run. The Group plans to cooperate with NCSC to build a new cement production line in Ethiopia, which is expected to become the largest cement production line in Ethiopia upon completion. The Board is of the view that this will bring regional advantages to the Group in the national cement industry in Ethiopia. Upon completion of these transactions, the Group will acquire a controlling interest in NCSC. With the technical, management and cost advantages of the Group and the expected high demand for cement in Ethiopia, the Group believes that the Transactions will enable the Group to lay the foundation to capture the potential opportunities in the cement industry in Ethiopia.