Huaxin Cement 's overseas layout has been moving constantly, especially in December, when the company announced two major acquisition plans. In early
December, Huaxin Cement planned to purchase equity assets at a price of about 838 million US dollars (about 6.105 billion RMB) . So as to hold Lafarge Africa Plc control of Nigerian listed companies (which will indirectly hold 83.81% of the shares), in order to expand the West African cement market.
Then on December 16, Huaxin Cement announced its intention to buy two Brazilian companies (which have four aggregate plants in Brazil) at a price of 186.6 million US dollars (about 1.359 billion RMB) through its wholly-owned subsidiary Huaxin (Hainan) Investment Co., Ltd. Open up the South American building materials market.
Overseas development is one of the four development strategies of Huaxin Cement. Li Yeqing, president of Huaxin Cement, mentioned in an investor relations event in the first half of this year that Huaxin Cement does not have too many restrictions on overseas development in the region, and the company will expand along a region, such as Africa in the recent stage, Asia is still looking for opportunities, and South America will go in the future. If Huaxin is committed to becoming a global multinational company, it will not stick to or be confined to a certain country or region.
If the Brazilian acquisition project is successfully implemented, it will be the first time for Chinese cement enterprises to enter the Brazilian building materials market. This pioneering initiative is not only a milestone for Huaxin Cement Company itself, but also provides valuable experience and learning opportunities for the international development of other domestic cement enterprises.
Li Yeqing stressed that China's development model should not be simply copied overseas, but should adhere to the principle of rationality and accumulate the ability to cooperate with different cultures, technologies and countries overseas.
It is understood that as the earliest cement enterprise to lay out overseas markets, Huaxin Cement has established cement production networks in 12 countries such as Tajikistan, Kyrgyzstan and Uzbekistan. As of the first half of 2024, the overseas clinker production capacity of Huaxin is 15.44 million tons/year, and the cement grinding capacity is 22.54 million tons/year. In addition, there are several new production lines and upgrading projects in Mozambique, Malawi, Zambia, South Africa and Zimbabwe. The total clinker production capacity under construction is about 3 million tons per year, and the total cement grinding capacity is about 2.7 million tons per year.
