Qilian Mountains 482 Million Increased Wine Steel Hongda, Sinoma Layout Northwest Market

In order to consolidate the status of Sinoma cement market in Sinoma Group, Sinoma Group and Jiuquan steel (Group) Co., Ltd. work together to gradually realize the strategic layout of its northwest cement market.

In May 28th, the Gansu Qilian Mountains cement group Limited by Share Ltd of Sinoma Group signed a capital increase agreement with Jiusteel (Group) Hongda building materials limited liability company. Qilian Mountains and its subsidiary Yongdeng Qilian Mountains India Cements Limited will add more than RMB 482 million yuan to the Hongkong iron and steel company in the form of money.

Since then, Sinoma has successfully opened up the Hexi Corridor, linking Gansu and Xinjiang into a line, and gradually realizing its strategic layout in the northwest cement market.

Jiang Zhixiang, general manager of Qilian Mountains holdings, chairman of Qilian Mountains cement chairman and deputy general manager of Jiuquan Iron and Steel Group, signed the agreement on capital increase of Hongda Building Materials Co., Ltd. as representatives of both sides.

It is reported that after the completion of the capital increase, Qilian Mountains and Yongdeng Qilian Mountains will hold 30% of Jiuquan Hongda shares respectively.

After signing the ceremony, Tan Zhongming said that by the end of 2011, the cement production capacity of Sinoma Group will reach 100 million tons, while the northwest and surrounding areas will account for about 70% of the total capacity.

At present, Jiusteel Hongda has a new dry process cement production line of 1000 tons per day and a daily output of 2000 tons. A production line of 5000 tons per day has been approved. The production line will be started immediately after the capital increase is completed, and it is planned to be put into operation before the end of 2011.

After the line is put into operation, it will accelerate the realization of the strategic goal of reaching 30 million tons of production capacity by the end of 2012 in Qilian Mountains.

In February this year, two production lines of annual output of 1 million 200 thousand tons in Gangu and Cheng County of Qilian Mountains were put into operation one after another, and the capacity of the company exceeded 10 million tons. In addition, the three line of Yongdeng under construction, Qinghai second line and Zhang county project, which were under construction, will form eight lines of four factories in northwest Gansu Province, seven lines in the East and five factories in the northwest, and five cement sales areas in Lanzhou, Tianshui, Longdong, Longnan and Qinghai Tibet.

At present, Sinoma Group owns three listed companies in Tianshan group, jockey industry and Qilian Mountains in Northwest China, accounting for 40% of Xinjiang, 60% of Ningxia and 40% of Gansu.

Under the dual encouragement of policy and market, Sinoma Group will continue to expand its territory in Northwest China. Relying on its own capital advantages and brand advantages of its subsidiaries, it will base itself on Xinjiang, Ningxia and Gansu, and enter Qinghai and Tibet regions. It will connect five provinces and form a closed lineup that can not be destroyed and can break through from west to East.