Xinjiang Tianshan Cement plans to issue up to 120 million shares at 20.64 yuan per share in order to raise a maximum of 2.8 billion yuan for expansion in Xinjaing, reports stated, citing a company filing.
Proceeds raised will be invested in five cement production facilities, including the expansion of two 4,000 t/d cement production lines, in Kashgar and Yecheng in Xinjiang province.
In addition, the cement producer wlll invest in a cement grinding plant with capacity of one million tonnes per year.
According to the report, the projects are located in regions with the strongest development potential in Xinjiang, such as Wuchang, Kashgar, Turpan, and Hotan.
The investments are forecast to handle 190,000 tonnes of mud from urban regions, and absorb 720,000 tonnes of acetylene sludge year.
The company's clinker production capacity in Kashgar will increase by 2.48 million tonnes per year, while that of cement will be raised by 3.73 million tonnes.
Tianshan Cement's clinker production capacity in Hotan will rise by 992,000 tonnes per year, while its cement production capacity will increase by 1.36 million tonnes.
Tianshan Cement said the investments were to take advantage of Xinjaing's rapid development.
Including the aforementioned investments, the company will have a total of 16 cement production lines that it plans to build, or are currently under construction.
The company is projected to have total production capacity of 46 million tonnes by the end of 2013, of which 92 per cent will consist of products made using the new dry-process cement production method.
By the end of the 12th Five-Year Plan, the company expects to have total production capacity of 50 million tonnes.
Shares of Tianshan Cement fell 1.12 per cent to trade at 22.05 yuan per share at 14:42 today.
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