Joint guarantee of 895 million yuan! Tianshan Stock Co., Ltd. has invested 1.22 billion yuan to speed up the clinker line project

Recently, Tianshan shares issued a notice to disclose the provision of guarantees for Kazakhstan subsidiary project loans, acceptance of related party guarantees and related transactions, and continue to promote the layout of overseas cement industry.

Previously, China Material Cement , a holding subsidiary of Tianshan Stock Company, invested in Kazakhstan QazCement Industries LLP (QC Company for short) through China Material Cement (Central Asia) Investment Co., Ltd. and acquired 70% equity. A 3500 t/d clinker cement production line will be built in Aktobe, Kazakhstan, with a total investment of USD 180,240,600 (about RMB 1.22 billion) . At present, the project is still under construction. It has not been put into operation formally.

In order to guarantee the capital demand of the overseas project, QC intends to apply to domestic banks for a project loan of no more than 895 million yuan with a maximum term of 8 years. The loan is jointly and severally guaranteed by Tianshan Stock and Sinoma International, a related party. Among them, Sinoma International provided a 28% equity penetration guarantee, with a maximum amount of 250.6 million yuan; Tianshan shares provided a 72% equity penetration guarantee, with a maximum amount of 644.4 million yuan. The landing of the

guarantee and related transactions will effectively guarantee the smooth progress of the construction of Kazakhstan's cement production line, and help Tianshan to further cultivate the Central Asian market and implement its international development strategy. According to

another source, the project has successfully completed the hoisting operation of the first column of the kiln tail tower on May 27, formally transferring from civil construction to equipment installation stage.

Tianshan's March into Kazakhstan is a microcosm of the large-scale overseas expansion of domestic cement enterprises in recent years. Affected by the continuous contraction of domestic market demand and the increasing pressure of overcapacity, the leading cement enterprises have turned their attention to overseas. In the long run, overseas layout is not only an important means to hedge domestic cyclical risks, but also a strategic way for Chinese cement enterprises to transform to globalization.