YTL Cement Divests China Plant
Kuala Lumpur, Tuesday 4 May 2021
On 30 April 2021, YTL Cement (Hong Kong) Limited finalised the disposal of its 100% equity interest in Zhejiang Hangzhou Dama Cement Co Ltd ("Dama Cement"). Having invested in Dama Cement in 2007, YTL Cement Group has seen aggregate returns of about CNY1.3 billion and profits of about RM250 million.
YTL Group Executive Chairman, Tan Sri Francis Yeoh, said, "This is an ideal time for us to make an exit given the current highly attractive valuation of the business. Through our investment in China, the largest cement producer in the world, we have been able to enhance our existing capabilities and build on our knowledge of the industry. Learning from its advanced technology, operational know-how, procurement, logistics and distribution systems, this exit is part of our strategy to concentrate on achieving a similar position of leadership in our key domestic, export and regional markets".
YTL Cement Group Managing Director, Dato' Sri Michael Yeoh Sock Siong, said, "This disposal is well-aligned with our focus on establishing ourselves as an industry leader in the regional cement market. Dama was our first substantial foray into China's cement industry, a major supplier in Hangzhou. The vital insight and knowledge that we have gained will be used in our plans to expand our operations within South East Asia".
Dama Cement owns a cement plant located in the Lin'an district of the Zhejiang Province in the People's Republic of China. YTL Cement Group acquired Dama Cement in 2007 and developed it into one of the most environmentally friendly and sustainable plants in the region.
The YTL Corp Group's cement business is undertaken through YTL Cement, operating in Malaysia, Singapore, Vietnam and Myanmar. The YTL Cement Group expanded its Malaysian operations in 2019 with the acquisition of the majority stake in Malayan Cement Berhad (formerly, Lafarge Malaysia Berhad) and is now the leading building materials group in Malaysia, offering end-to-end building solutions.