Since 1994, Shui On has actively invested in the cement production business in Chongqing, Guizhou, Nanjing and Yunnan. With solid experience in acquisitions and reforming state-owned plants, strong marketing and management expertise as well as an established reputation in the industry, Shui On has continued to build a sizeable cement operation in southwest China, a strategy that coincides with the Central Government's "Go West" policy, which aims at modernizing the central and western provinces. It had become the leading cement producer in Chongqing and Guizhou by 2005.


Lafarge Shui On Cement

In November 2005, SOCAM and Lafarge, the world leader in building materials, announced a joint venture partnership to merge their cement operations in China. The strategic alliance will establish the new cement leader in the South West Region, one of the largest and fastest growing areas in the Chinese Mainland. The joint venture, named Lafarge Shui On Cement, is 55% owned by Lafarge and 45% owned by SOCAM.

Lafarge Shui On Cement combines Lafarge's cement operations in Sichuan, Chongqing and Beijing; with SOCAM's cement operations in Chongqing and Sichuan, its three plants with dry kilns in Guizhou, as well as three major cement plants in Yunnan. It is expected to reach an annual production capacity of about 23.3 million tonnes by end of 2006.

Cement Operations in Guizhou
 

SOCAM started its cement operations in Guizhou in 2000. Currently, SOCAM operates six cement plants in Zunyi, Xishui, Kali, Yuqing, Bijie and Changda, and a grinding station in Hejiang, with a total production capacity of 1.5 million tpa.

In 1998, SOCAM acquired a 60% interest in Nanjing Jiangnan Cement Company Limited, which operates a cement plant in Nanjing. The plant was converted into a grinding mill in 2005, and continues to supply cement to the local market and export to Australia.