Contract Wins and approval of new capacity


 

TIDMWCC 
 
RNS Number : 8269M 
West China Cement Limited 
01 June 2010 
 

                            West China Cement Limited 
                                  1 June 2010 
           Contract Wins and approval of construction of new capacity 
 
West China Cement Limited ("WCC") is delighted to announce that it has won 
contracts to supply cement to the Xi'an - Ankang double-track railway. 
 
WCC, directly and indirectly, has won contracts for seven out of the ten 
sections of the Xi'an - Ankang double-track railway. The line, with a distance 
of 243.8 kilometres, connects Xi'an City and Ankang City in Southern Shaanxi and 
runs through the Xi'an, Shangluo and Ankang regions of Shaanxi Province, where 
our Lantian, Zhen'an and Ankang plants are located. The estimated cement 
consumption for the whole line is approximately 1.50 million tonnes, of which 
approximately 1.35 million is required for the seven sections won by WCC. 
 
This project illustrates the strong demand for our cement products from 
infrastructure projects that continue in Shaanxi Province as an integral part of 
the PRC Government's Western Development Policy and the Company remains 
confident that this development will continue. This confidence is further 
underpinned by government policies to reduce old cement capacity and to promote 
social housing. 
 
Against this background, the Company is also delighted to announce that it is 
proceeding with the construction of the two planned cement plants that we 
indicated were at planning stage at the time of our Annual Report. 
 
Pucheng Line 2, with a capacity of 1.1 million tonnes per annum, will raise our 
total capacity in Pucheng to 2.5 million tonnes and secure our strong market 
position in the Weinan region. This plant is expected to be completed by the 
second half of 2010. The Xixiang Plant, also with a capacity of 1.1 million 
tonnes per annum and based in the Hanzhong region, is 110 Km away from our 
Yangxian plant. This plant is expected to be completed by the first half of 
2011. The Company is able to finance these plants from internally generated 
cashflow. 
 
Commenting on these contract wins and capacity expansion, Mr Jimin Zhang, CEO, 
said: 
 
"These contracts not only show that the development of infrastructure continues 
apace in our province but also shows West China Cement's increased 
competitiveness in securing  major contracts in Southern Shaanxi. Our new plants 
will further increase this competitiveness in our core markets of Weinan and 
Hanzhong." 
 
WCC's Chairman, Robbie Robertson, added 'the construction of these two 
additional plants is demonstrative of our continued confidence in the Shaanxi 
market'. 
 
WCC's Listing on the Hong Kong Stock Exchange, and De-Listing on Aim is expected 
to take place in the second half of 2010. An extraordinary general meeting will 
be convened by the Company to propose a resolution to approve the De-Listing. 
 
 
For further information, please contact: 
 
 West China Cement Limited 
Po Ling Low, Tel: +86 139 1088 6649 
Anthony Schindler, Tel: +44 7710 1789 28 
 
NCB Stockbrokers Limited 
Christopher Caldwell, Tel: +44 20 7071 5200 
 
Citigate Dewe Rogerson Asia 
Pui Shan Lee' Tel: +86 21 6340 4186 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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