China National Materials (Sinoma) will merge with rival China National Building Material to form the world’s largest cement maker and cement plant builder.
Their aim in the next three to five years is to manage 100 cement plants in countries along the Belt and Road Initiative.
In recent years, China’s fourth largest and fifth largest cement companies have produced 520 million tonnes per annum at their clinker plants around the world. They currently operate 35 plants in Western Asia.
Sinoma has about 65% of the global cement plant construction market excluding China, and it competes with multinational majors such as Switzerland-based LafargeHolcim.
In Saudi Arabia, about 70 % of the country’s total capabilities (20 million tonnes) come from Sinoma-built cement plants.
The companies are listed on the Hong Kong Stock Exchange (HKEX) and the merger was approved by a shareholder meeting on Wednesday.
While the annual capacity of 520 million tonnes of CNBM and Sinoma is small compared with China’s capacity of approximately four billion tonnes, it represents an avenue for long-term growth, reports SMCP.