On May 5, Wang Cheng, Party Secretary and Chairman of Conch Group, and Wang Jianchao, Party Member and Deputy General Manager of Conch Group, came to Tongliao City, Inner Mongolia, visited Naiman Banner and Horqin District on the spot, and signed a tripartite cooperation agreement with Hongji Cement and Naiman Banner People's Government. At the
signing ceremony, Meng Xiandong, member of the Standing Committee of the Party Committee and Secretary of the Municipal Party Committee of Inner Mongolia Autonomous Region, said that on December 15 last year, I visited the headquarters of the Group in Anhui Province, and on January 11 this year, the delegation of the Group visited Tongliao City for docking. In just a few months, Conch Group and Acer Cement reached a consensus on asset restructuring and formally signed a cooperation agreement, which fully reflects the excellent strategic vision and strong professionalism of the two enterprises. The signing of the agreement marks a decisive step for Conch Group to enter Tongliao and lay out the Northeast market.
Wang Cheng thanked the Tongliao Municipal Committee and the Municipal Government for attaching great importance to and supporting the development of Conch Group. He said that Tongliao has obvious advantages in resources, location and industry, and has broad prospects for development. The signing of the contract is not only a strategic consensus reached by both sides, but also an inevitable choice to achieve high-quality development of both sides. Conch Group has fully felt the good development trend and business environment of Tongliao. In the next step, the Group will take the Hongji Cement Project as the starting point, further strengthen communication and in-depth docking, carry out all-round cooperation in projects and industries, and contribute more to the high-quality development of Tongliao.
According to the cooperation agreement, Hongji Cement Co., Ltd. cooperates with Conch Cement Co., Ltd. through equity and asset transfer. Conch Group will increase investment, organize and implement energy-saving and emission-reduction technology transformation projects, adopt the most advanced intelligent technology and equipment in the world's cement industry, focus on the main cement industry and upstream and downstream industries, extend the chain and strengthen the chain, and use advanced desulfurization and denitrification technologies to effectively reduce carbon emissions. Build Tongliao intelligent and green cement clinker demonstration production line.
According to the data of China Cement Network, Naiman Banner Hongji Cement Co., Ltd. has a 4000t/d clinker production line, which was put into operation in September 2013.
In fact, since 2021, Conch Cement has accelerated the pace of acquisition and merger, and the primary and secondary markets have gone hand in hand.
In October 2021, Yatai Group held 5% of its shares and became its second largest controlling shareholder;
in November, it acquired Guangdong Hongfeng Cement to improve its market control in Guangdong;
In December, it subscribed for non-public shares of Western Construction, accounting for 16.3% of its total equity, and strengthened the layout of the cement-commercial mixed industrial chain.
In addition, Conch Cement also invested 0.2 billion shares of Shangfeng Cement , accounting for 2.49%, becoming the fifth largest shareholder, contacting Huaxin Cement and acting as an independent third-party cash option provider for its overseas listing. In February 2022, it subscribed for directional additional shares of Tianshan Stock, holding 0.86% of Tianshan Stock, ranking the third largest shareholder, which greatly improved the market control and influence of Conch Cement after a series of operations. Wang Cheng, secretary and chairman of the Party Committee
of Conch Group, said in an interview with the media that during the 14th Five-Year Plan period, Conch will seize the favorable opportunity, intensify mergers and reorganizations, steadily promote overseas layout, further expand the scale of cement production capacity, increase market share and voice, and enhance risk resistance.
It is reported that after the promulgation of the new "Measures for the Implementation of Capacity Replacement in Cement Glass Industry" in July 2021, the expansion of cement enterprises'capacity is strictly restricted. According to the tracking of China Cement Network Cement Big Data Research Institute, 21 new clinker production lines were put into operation in 2021, with a total capacity of 31.992 million tons, down 18.9% from the same period. Leading enterprises can only expand their scale and improve their industry control through mergers and acquisitions.
In 2021, there were many cement acquisition and merger cases, among which the acquirers were all cement head enterprises.
Table 1: Cross-group acquisition and merger
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