Photo shows an old cement factory in Tangshan city, north China.
BEIJING, June 4 (Xinhua) -- Central China's Henan Province is making efforts to enhance concentration in the building materials industry.
Recently, China United Cement and Henan Investment Group have signed an agreement to build a joint venture (JV) in Zhengzhou, capital of Henan Province, with a registered capital of 10 billion yuan.
China United Cement will take a 60-percent stake in the JV and the Henan Investment Group will hold the remaining.
It is estimated that after the establishment, the JV will have its business in 13 cities in Henan, with an annual production capacity of 30 million metric tons (tonnes) of clinker, 40 million tonnes of cement, and 20 million cubic meters of commercial concrete.
In recent years, traditional industries such as steel, cement, and glass have faced severe challenges, such as overcapacity, and strict environmental protection requirements.
Under such circumstances, de-capacity in the domestic cement industry is a priority. The reorganization marks a big step forward taken by the province in the de-capacity process. (Edited by Hu Pingchao with Xinhua Silk Road, hupingchao@xinhua.org)
A single purchase
