CKI Announces New Milestone HK$700 Million Project in China
Materials Portfolio Extended by Flagship Yunfu Cement Plant
8 March, 2010
Cheung Kong Infrastructure Holdings Limited ("CKI" or the "Group") announced today the further extension of its portfolio in Mainland China through the development of new cement production facilities in Yunfu, Guangdong Province. The new facilities are poised to enhance profitability for the Group's materials business in Mainland China.
Land Acquisition Signing Ceremony
A signing ceremony attended by Mr Edmond Ip, Deputy Chairman of CKI; Mr Lambert Leung, Chief Executive Officer of Cheung Kong Infrastructure Materials; Mr Huang Qiang, Vice Party Secretary of CPC Yunfu Municipal Committee and Mayor of Yunfu City; Mr Jin Fanfeng, Party Secretary of CPC Yun'an County Committee and Chairman of Yun'an People's Congress; and Mr Xiao Xiangrong, Vice Party Secretary of CPC Yun'an County Committee and County Mayor of Yun'an County, was conducted last week. At the signing, Green Island Cement (Holdings) Limited ("Green Island"), a subsidiary of CKI, concluded the acquisition of 700 acres of land on which the Group will build and operate its new flagship cement plant.
Investment of HK$700 Million
With an investment of HK$700 million, the new plant will be wholly owned by Green Island and will have a clinker capacity of 4,500 tonnes per day. Approval for the project has been granted by the Development and Reform Committee of Guangdong Province. Under the approval conditions, the project also encompasses the installation of a 9MW waste heat regeneration system which will be used by the new plant. Target completion date for the project is early 2012.
Green Island has also received approval from the local government to develop a pier capable of handling three barges at any one time along a coastal area of 60 acres with a 350 metre frontage.
Important Milestone for Materials Business Expansion
Commenting on the new project, Mr Ip said: "We are very pleased to announce this important milestone that sees the expansion of our materials business in Mainland China. The demand for cement has grown rapidly in both Guangdong and throughout the country in recent years."
He continued: "The expansion of our cement production facilities represents a timely move that is poised to enhance the profitability of our Chinese cement production operations and bring attractive returns to the Group."
"Green Island already has a cement plant in Yunfu, as well as mining rights to a limestone quarry of over 100 million tonnes in the nearby vicinity. The construction of this new cement plant will offer synergies with these existing cement production and quarrying operations. Together with the pier development, Green Island will be able to provide vertically integrated cement production and distribution facilities, enhancing its competitive edges as a leading materials supplier in the region," commented Mr Ip.
Mr Ip continued: "With two cement plants in Yunfu and one in Hong Kong, Green Island will be well-positioned to serve the markets in Hong Kong, Guangdong Province and beyond."
New Addition to China Portfolio
Mr H L Kam, Group Managing Director of CKI, said: "Mainland China has always been one of CKI's core markets. This new addition will further expand the scope of our infrastructure businesses in Mainland China.""We will continue to explore new opportunities for growth and expansion. With our strong balance sheet and cash on hand of over HK$10 billion, we will seek new projects in both existing and new markets. In addition to Mainland China, a number of projects around the world are currently being studied," concluded Mr Kam.
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CKI is the largest publicly listed infrastructure company in Hong Kong with diversified investments in Energy Infrastructure, Transportation Infrastructure, Water Infrastructure and Infrastructure Related Business. Operating in Hong Kong, Mainland China, Australia, New Zealand, the United Kingdom, Canada and the Philippines, it is a leading player in the global infrastructure arena.
At a signing ceremony, Green Island Cement (Holdings) Limited, a subsidiary of Cheung Kong Infrastructure Holdings ("CKI"), concluded the acquisition of 700 acres of land in Yunfu, Guangdong Province where it will build and operate a new flagship cement plant. The ceremony was attended by Mr Edmond Ip, Deputy Chairman of CKI (second row, centre); Mr Lambert Leung, Chief Executive Officer of Cheung Kong Infrastructure Materials (front row, left); Mr Huang Qiang, Vice Party Secretary of CPC Yunfu Municipal Committee and Mayor of Yunfu City (second row, fourth from right); Mr Jin Fanfeng, Party Secretary of CPC Yun'an County Committee and Chairman of Yun'an People's Congress (second row, far right); and Mr Xiao Xiangrong, Vice Party Secretary of CPC Yun'an County Committee and County Mayor of Yun'an County (front row, right).
To mark the occasion, a souvenir was presented by Mr Mr Huang Qiang, Vice Party Secretary of CPC Yunfu Municipal Committee and Mayor of Yunfu City (right) to Mr Edmond Ip, Deputy Chairman of CKI (left).