Executive Summary
West China Cement Limited is a producer and distributor of cement, based in Shaanxi Province in the Peoples' Republic of China and headquartered in Xi'an, the provincial capital of Shaanxi Province. The Group operates three cement production lines in the Pucheng area, approximately 150km to the North East of Xi'an, with a combined annual capacity of 1.5 million tonnes. The production lines are currently operating at full capacity being approximately 300 days of operations per year.
Company History
- West China Cement was established on 16 October 2006 following a re-organisation of the Group, but its history can be traced back to 1977. Pucheng County Hanjing Town Commune Cement Factory was established in 1977 by the Hanjing Commune (a level of local government).
- In 1989 it became a legal entity and its name was changed to Pucheng County Hanjing Cement Factory.[1]
- Listed on AIM in December 2006 at 105p a share, raising £20m to finance the construction of a new cement plant.
Current Events
- WCC recently won two important new contracts [2]: ####ian Expressway (750 ks linking Central China and North Western China and c. 3 million tonnes of cement) and the Baotou - Xi'an Railway Line which connects Baotou in Inner-Mongolia and Xi'an in Shaanxi Province.
Business Model
Products/Services
The Group manufactures three types of cement, as well as clinker, a cement compound:
- Ordinary Portland Cement is a mixture of clinker, mineral admixtures (accounting for 6 to 15 per cent.) and gypsum, which is widely used in industrial and civil construction projects
- Flyash Portland Cement is a mixture of clinker, flyash and gypsum. The content of flyash by weight ranges from 20 per cent. to 40 per cent.depending on its intended use
- Composite Portland Cement is a mixture of clinker, at least two kinds of prescribed mineral admixtures and gypsum, which is widely used in industrial and civil construction projects
- Clinker is the base of the above mentioned products, the principal raw material of which is limestone. The Group does not intend to sell clinker as a separate product in the future
Segments/Customers
These products are predominantly sold in the Weinan, Xi’an and Yan’an areas of Shaanxi Province,. Major clients include ready mix concrete plants, public construction contractors and wholesale cement distributors.
Production/Operations
The Group operates three cement production lines in the Pucheng area, approximately 150km to the North East of…
