Recently, Jidong Cement announced that in order to accelerate the pace of overseas development and realize the overseas distribution of cement production capacity, the company intends to acquire 60% equity of China-Africa Jidong Building Materials Investment Co., Ltd. held by Jidong Development Group Co., Ltd. in cash. At the same time, it accepts the request of China-Africa Development Fund Co., Ltd. , the shareholder of China-Africa Building Materials, to acquire 40% of its shares in China-Africa Building Materials under the same conditions, and signs the Equity Transfer Agreement respectively. After the completion of the
transaction, the company holds 100% equity of China-Africa Building Materials.
Based on the requirements of overseas investment rules and the opinions of shareholders, China-Africa Building Materials has indirectly invested in the establishment of a cement production company, Mamba Cement, through its overseas subsidiaries, and the holding subsidiary of China-Africa Building Materials holds 100% of the equity of Mamba Cement.
Mamba Cement is located in Tabazimbi City, Limpopo Province, South Africa, 200 kilometers northwest of Johannesburg, the largest city in South Africa. It is a wholly-owned subsidiary of Intersection Company with a registered capital of 340 million rand (RMB 198.45 million).
It has a cement production line with a daily output of 2800 tons of clinker , equipped with a set of 6 MW low-temperature waste heat power generation system, with an annual clinker production capacity of 870000 tons and a cement production capacity of 1 million tons. The operation
in recent years is as follows:
The profitability of Mamba Cement, a subsidiary of China-Africa Building Materials, has stabilized at a relatively high level in recent years. The acquisition of China-Africa Building Materials will be conducive to further improving the operating results of the Company and is economically feasible.
The announcement said that the acquisition of Sino African building materials equity was made according to the company's strategic development needs, and the company continued to cultivate the main cement industry. As a listed company in the large building materials industry, it has been paying attention to and planning to cooperate with the countries along the "one belt and one road" and the countries that signed the memorandum of cooperation, so as to open up overseas markets. To achieve "zero breakthrough" in the company's overseas layout.
Previously, Jidong Cement said that the real estate closely related to cement demand is still in the stage of deep adjustment, coupled with industrialization and urbanization gradually entering a mature stage, the total population is declining, the lack of effective demand makes the problem of overcapacity more prominent, the contradiction between supply and demand is further aggravated, and the real estate industry is still in the stage of deep adjustment. In addition, the usual measures such as peak staggering production are difficult to fundamentally solve the imbalance between supply and demand, and the cement industry has entered a deep adjustment period characterized by reduction, differentiation and integration.
Based on this, the company will focus on the industrial layout, pay close attention to the investment opportunities of the countries along the "Belt and Road" route and the countries that have signed the memorandum of cooperation, give priority to planning the layout of production capacity in southern Africa, strive to achieve new breakthroughs in overseas development, and provide new momentum for the company's high-quality development.
It is understood that in recent years, in order to cope with domestic overcapacity, fluctuations in market demand and seek new growth points, the pace of overseas expansion of domestic cement enterprises has accelerated significantly.
