Lafarge Shui On Cement, the joint venture between world's largest cement producer Lafarge, and SOCAM, the leading cement factory in southwest China, Tuesday announced in Beijing the acquisition of 100% of the shares of the Shuangma Investment Group in Sichuan Province.

Taking into account the debt of the listed company and investment budgeted in the short-term to improve the existing facilities, the total investment for Lafarge Shui On Cement would amount to around US$160 million, according to the announcement.

Through this acquisition, Lafarge Shui On Cement is strengthening its positions in Chengdu, the capital of Sichuan, which is already supplied by the Dujiangyan Lafarge cement plant whose production capacity is currently being doubled to 2.8 million tons in 2006.

Shuangma acquisition also provides two complementary positions in Sichuan: a cement plant in the north of the province near Mianyang, and two plants in the south near Yibin. The acquisition has made the joint venture the cement leader in Sichuan.

Lafarge Shui On Cement already had a production capacity of 2.3 million tons in Sichuan and will have a total production capacity in the province of 5.6 million tons by the end of 2005, and 7 million tons after the completion of the second line in Dujiangyan.

The transaction will increase the cement production capacity of the joint venture in China to 21 million tons, bolstering its position as the leader in Southwest China, among one of the three largest cement producers in China.

Lafarge Shui On Cement is 55% owned by Lafarge and 45% owned by SOCAM. While SOCAM Chairman Vincent Lo chairs the joint venture's board of directors, Lafarge leads the management of the joint venture with Cyrille Ragoucy as Chief Executive Officer.

According to company, Lafarge Shui On Cement combines the expertise and know-how of Lafarge in turning around cement operations, and Shui On's experience and reputation in the Chinese market.

Among the main companies controlled by Shuangma Investment Group, in Chengdu, Shuangma Cement Co. Ltd is listed on the Shenzhen Stock Exchange.

Lafarge, the world leader in building materials, holds top-ranking positions in all four of its divisions: cement, aggregates & concrete, roofing and gypsum. Lafarge employs 77,000 people in 75 countries and posted sales of 14.4 billion Euro in 2004.

SOCAM, a member of the Shui On Group, was listed on the Hong Kong Stock Exchange in 1997 and is engaged in construction and construction materials in Hong Kong and the Chinese Mainland. The company also has an interest of more than 20% in Shui On Land Limited.

Source: Xinhua