Qilianshan increased capital in Jiugang Hongda

May 28, Qilianshan, a subsidiary of Sinoma, signed an agreement of capital increase with Jiugang (Group) Hongda Building Materials Co., Ltd. According to the agreement, Qilianshan and its subsidiary Yongdeng Qilianshan Co., Ltd. will add capital of RMB 241 million Yuan in cash to Jiugang Hongda respectively.

Mr. Liu Li, Vice Chairman of the State-owned Assets Supervision and Administration Commission of Gansu Province, presided over the signing ceremony. Tuo Licheng, Chairman of Qilianshan, and Jiang Zhixiang, Vice President of Jiugang signed the agreement of capital increase on behalf of the both parties.

According to the agreement, Qilianshan and Yongdeng Qilianshan will increase capital of RMB 241,318,125 Yuan respectively. After the completion, Jiugang Group will hold 37.8599%, Changcheng will hold 2.1401%, Qilianshan and Yongdeng Qilianshan will hold 30% respectively.

Jiugang Hongda owns two NDP cement production lines, one of which is a 1000 t/d line and the other is a 2000 t/d line. It is now building a 5000 t/d production line.

At the beginning of 2010, two 120 t/y cement production lines built by Qilianshan in GansuProvince had been put into production. The total production capacity has reached more than 10 million tons. It is expected that the production capacity will reach 15 million tons within this year. At present, there are three production lines with the production capacity of 5000 t/d, 5000 t/d and 3000 t/d being built by Qilianshan. After the completion of these projects, Qilianshan will possess 5 cement regional markets in the Northwest.

Strengthening Qilianshan s power will drive Sinoma s development in Northwest China. At present, Sinoma has three public companies in Northwest China, which are Tianshan Cement, Saima and Qilianshan, accounting for the market share of 40% in Xinjiang, 60% in Ningxia, and 40% in Gansu respectively.

Sinoma Chairman Tan Zhongming said that the cement production capacity of Sinoma Group will reach 100 million tons and the capacity of Northwest China and its surrounding areas will account for about 70% by the end of 2011.

Tuo Licheng (right), Chairman of Qilianshan, and Jiang Zhixiang, Vice President of Jiugang signed the agreement of capital increase

Mr. Shi Jun, Vice Governor of Gansu Province

Mr. Li Yongjun, Vice Chairman of Gansu CPPCC

Mr. Yun Jianmin, Deputy Secretary General of Gansu Province

Mr. Ma Aiwu, Chairman of Gansu SASAC

Mr. Yu Haiyan, Chairman of Jiugang Group

Mr. Tan Zhongming, Chairman of Sinoma Group