JEC COMPOSITES MAGAZINE - Issue #108 - October 2016 - 13

Basalt

Present and future of basalt fibre technology,
manufacturing and market development

BUSINESS

CNBM / Sinoma

China composites industry expects
reorganization as two construction giants merge

CNBM / Sinoma MERGING

China composites industry expects
reorganization as two construction giants merge
China National Building Materials Group Corp. (CNBM) will take over smaller
rival China National Materials Group Corp. (Sinoma). The agreement between
the two companies was approved by the Chinese government, according
to a notice by the state-owned Assets Supervision and Administration
Commission (SASAC). Both groups belong to the 300 state-owned companies
considered as strategic by the Chinese government.

he deal is part of an ambitious plan by China under
president Xi Jinping's leadership to revamp its lumbering
and debt-ridden state sector, with
the goal of creating globally competitive multinationals through
mergers, asset swaps and sweeping management reforms. Such
big scale mergers have already
been observed lately in China in
various areas such as the railway
manufacturing and steel industries.
CNBM is China's leading building materials group mainly engaged in cement, lightweight
building materials, fibreglass and
composite materials, and engineering services. CNBM owns
200 solely owned and joint venture subsidiary companies.
Already focused on international expansion, Sinoma is China's
leading non-metal materials manufacturer and second building

materials group. Currently one of
the biggest cement engineering
system integrated service providers in the world, its overseas business now accounts for more than
70% of the total.
In a press release formalizing
the merger agreement, the new
group declares a total production
of "530 million tons of cement
clinker, 430 million m3 of readymixed concrete, 2 billion m2 of
plasterboard, 1.78 million tons
of fibreglass, and 16 GW of wind
turbine blades per year, all of
which rank the first in the world."
It also claims the leadership in the
international cement engineering
market and the international cogeneration market.
With the merger completion,
the two groups will integrate
their activities in the composite
fibres and glass sectors. CNBM
is the parent company of CCGC,
the China Composites Group
Corporation, its main company
in the composite materials industry, whose products serve in

various sectors including energy,
construction, transportation and
chemical industries. CCGC is the
main manufacturer of glass fibre
mat in China, and is also a major
producer of wind blades and carbon fibre. It is also the organizer
of the biggest composites expo in
the Asia-Pacific region - China
Composites Expo, held each year
in September in Shanghai.
In terms of advanced materials, CCGC notably co-owns
Zhongfu Shenying Carbon Fiber,
a joint venture established with
Lianyungang Yingyou Textile
Machinery and Jiangsu Aoshen
Group, which specializes in the
research and production of PAN
precursor, carbon fibre and the
corresponding composite material products.
CNBM also owns Jushi Group, a
leader in the global fibreglass industry, which started to produce
internationally in 2014, with the
implementation of a new plant in
Egypt and the launching of a new
plant project in the United States.
No108 October 2016

For its part, Sinoma owns
Taishan Fiberglass, whose leading products cover several different types and specifications,
notably E-glass roving, chopped
strand mat, yarn, electronic fabric, chopped strands, multiaxial
fabrics, knitted fabrics, woven
roving. Its products are exported
to over 60 countries and regions,
including the United States,
Europe and the Middle East.
The new conglomerate will be renamed China National Building
Material Group (CNBM Group),
and has announced owning total
assets worth 550 billion yuan,
employing 250,000 persons and
generating an annual income of
300 billion yuan.
The shareholders of the 14 listed companies owned by both
groups have been notified that
the merger's modalities and conditions have not been defined yet.
The scope of the new giant group
will certainly take time to settle.
More information:
www.cnbm.com.cn

/ jec composites magazine

http://www.cnbm.com.cn

Table of Contents for the Digital Edition of JEC COMPOSITES MAGAZINE - Issue #108 - October 2016