Jinyu Group announced on December 6 that Jidong Cement, a holding subsidiary of the company, intends to acquire 100% equity of Shuangyashan New Age Cement Co., Ltd. (Hereinafter referred to as " Shuangyashan Cement ") at a valuation of 635 million yuan.
It is reported that Shuangyashan Cement was founded in 1958, and in 1999, it was restructured by state-owned enterprises and became a shareholding enterprise for all employees. Located in Lingdong District , Shuangyashan City, Heilongjiang Province, the company has a 4000t/d cement clinker production line, a cement grinding station with an annual output of 2.6 million tons and a supporting 9MW waste heat power generation system, and its own mines are going through the procedures of storage expansion. It is estimated that the recoverable reserves after completion can meet the production demand of cement clinker production line for more than 30 years.
Shuangyashan Cement is located in the eastern part of Heilongjiang Province, and its sales market is mainly in Longdong area, which is blocked by mountains, more closed market, less impacted by external cement and clinker, and is the price highland of Heilongjiang and even the whole northeast region. It forms a market synergy with Heilongjiang Jidong, which belongs to the company and covers Longzhong area. To improve the company's voice in the Heilongjiang market, in addition, it will promote other local enterprises to cooperate with the company in depth in the region, resulting in a 1 + 1 & gt; 2 effect, which will help the company to turn key market areas into key profit areas. After the completion of this
transaction, Shuangyashan Cement needs further integration in management and market coordination, and there are market operation risks. After the completion of this transaction, the company will strengthen overall planning to minimize transaction risks.
