Anhui Conch Plans to Spend $2.9 Billion for Expansion

By Helen Yuan

March 7 (Bloomberg) -- Anhui Conch Cement Co. plans to spend at least 20 billion yuan ($2.9 billion) in five years, adding 10 million metric tons of capacity each year.

The company will focus on building plants in China’s southwestern provinces and cities including Sichuan, Chongqing and Shaanxi, Guo Wensan, the general manager of the company, told reporters today in Beijing where he’s attending the National People’s Congress. It had more than 130 million tons of capacity last year.

China has announced that it plans to spend 4 trillion yuan ($585 billion) to stimulate the economy, including funding for roads, bridges and railways, raising optimism the investment will help shield the world’s third-largest economy from recession that has taken hold in the U.S., Europe and Japan.

“The spring (for the cement industry) is coming,” Guo said.

The company will focus on expansion rather than domestic acquisitions, Guo said. Still, the company is looking for overseas purchases amid the financial crisis that has made possible targets cheaper, he said, without elaborating.

To contact the reporter on this story: Helen Yuan in Shanghai at hyuan@bloomberg.net