Cement industry will be born a new giant

category:Finance
 Cement industry will be born a new giant


Tianshan shares announced on the 24th that the company intends to purchase the assets of China building materials cement plate by issuing shares or issuing shares and paying cash to purchase assets. The underlying assets under discussion include Zoomlion cement, southern cement, northern cement, southwest cement, Sinoma cement, as well as cement assets subordinate to China Building Materials investment.

Qilianshan, a subsidiary of China building materials, also announced on July 24 that the restructuring and integration plan at this stage does not involve the company. At present, the companys cement business is normal, and the company continues to maintain its existing cement business.

It is worth noting that Qilianshan pointed out in the announcement that China building materials, as the controlling shareholder of the listed company, will continue to perform the relevant obligations to avoid horizontal competition, and further integrate related businesses as soon as possible when conditions are ripe.

Sun Ying, an analyst in the building materials industry of Zhongtai securities, commented on the acquisition of Tianshan shares on July 25. He believed that if the acquisition is completed, the production capacity of Tianshan cement clinker is expected to increase to 350 million tons / year, ranking first in China.

Sun Ying pointed out that if China United Cement, southern cement, northern cement, southwest cement, Sinoma cement were fully acquired, and the cement assets of China building materials Investment Co., Ltd. were to be fully acquired, 9427, 9929, 2405, 8348, 1860 and 1.97 million tons / year respectively, totaling 322 million tons / year (data from China cement network). The total production capacity of Tianshan cement clinker is expected to reach 350 million tons / year (according to China Cement Association, the design capacity of cement clinker of the top 50 large enterprise groups in 2019 is 1.38 billion tons / year, and the production capacity of conch is 210 million tons / year).

China Building Materials Group holds 46% of the shares of Tianshan. As a listed A-share company, Tianshan is also a good capital platform for China building materials to inject high-quality assets into the mainland market. The move of Tianshan shares opens the prelude to the cement assets integration of China building materials, and the integration of other assets of China building materials is expected to accelerate simultaneously.

After Tianshan company issued the reorganization plan, Ningxia building materials and Qilianshan successively announced that China building materials planned to promote the reorganization and integration of cement business plate, and the reorganization and integration plan at this stage did not involve the two companies. However, as the controlling shareholder of the listed company, China building materials will continue to perform the relevant obligations to avoid horizontal competition, and further integrate related businesses as soon as possible when conditions are ripe.

Judging from this, in the follow-up, the problems of cement industry competition in Northwest China such as Qilian Mountain and Ningxia building materials are expected to be solved quickly.

Source of this article: Yang Qian, editor in charge of CFA_ NF4425