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West China Cement (WCC)

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Thursday 26 July, 2007

West China Cement

Trading Statement

West China Cement Limited
26 July 2007

26 July 2007



        West China Cement Limited ('West China Cement' or the 'Company')

                                 Trading Update



The Directors of West China Cement are pleased to announce the following trading
update.





First Half Trading



The cement market in Shaanxi Province remains buoyant and the Company has
benefited from firmer pricing which, coupled with improved cost control and
expanded capacity, means that profits for the first half of 2007 will be ahead
of the comparative period in 2006 and on track to meet market expectations for
the full year.



Lantian update



The Company's new production line at Lantian, 35km from Xian, commenced
production earlier this year. The first production line at Lantian, with
capacity for producing one million tonnes of cement per annum, is currently
operating at approximately 95% of designed capacity. The second production line,
of an additional one million tonnes, is now anticipated to commence operations
in August, ahead of the previously indicated timetable.



During the course of the construction of the Lantian plant, a number of
additional opportunities to improve the efficiency of the plant have emerged.
The Company has spent an additional RMB 47 million on these opportunities,
meaning that the total capital cost of the project is expected to be
approximately RMB470 million. These projects include facilities enabling the use
of de-sulphurised gypsum in the production process, increasing the capacity to
use wet fly-ash rather than dry and bringing the crushing of limestone in-house.
These enhancements are expected to lead to operating cost reductions and the use
of de-sulphurised gypsum contributes to the PRC Government's green agenda.





Ankang



The directors of West China Cement are pleased to confirm that the local and
provincial governments have granted the Company authority to build a plant with
capacity of 1.8 million tonnes per annum in the Ankang area, in the south of
Shaanxi Province. After due consideration, the Board has today approved the
project and pre-construction work is scheduled to begin by the end of August,
with completion provisionally scheduled for early in 2009. There are currently
no large scale cement production plants in the Ankang area, meaning that cement
has to be brought into the region from a long distance away, leading to pricing
levels above those in the regions in which the Company currently operates. The
Directors believe that the proposed plant will benefit from significant location
and scale benefits and that the Company has sufficient systems and procedures
and depth of management to continue to deliver and manage its expansion. Further
details on the Ankang project will be provided in the interim statement in
September.



Enquiries:



Brett Miller, Director, West China Cement Limited

Tel: +44 207-584 3663



Christopher Caldwell, Insinger de Beaufort

Tel: +44 207-190 7000


                      This information is provided by RNS
            The company news service from the London Stock Exchange