GKE Corp – via its wholly owned subsidiary - Wuzhou Xing Jian Readymix Co. – is investing S$9.7 million in a new ready-mix cement plant in Cenxi City, China.
Wuzhou Xing Jian Readymix Co. has signed a construction agreement with the municipal government of Cenxi City recently.
The government is expected to lease 25 mu (about 16,667 square metres) of land (with a tenure of 50 years) to Wuzhou for the new plant.
Wuzhou Xing Jian Readymix Co. that produces and supplies ready-mix cement products, expects to complete construction of the plant in 15 months – once it gets the land use rights grant.
The cement plant will be funded via internal resources and issuing 100 million new ordinary shares at S$0.07 per share to three investors - two GKE Corp employees and one private investor. The proposed placement will raise S$7 million.
The company already has a successfully running plant (commenced operations in 2016) which is also its first automated ready-mix cement plant in Wuzhou City, China.
The new cement plant is expected to help expand the group’s ready-mix cement business and support ongoing urbanization plans in Cenxi City.
For more recent trends in China’s cement market, attend CMT’s 21st Asia CemenTrade Summit on 13-14 November, 2019 in Manila.
