The agreement announced on May 4, 2012, between the Italcementi Group and West China Cement has been finalized, after the approval of the Chinese authorities.
Under the agreement, the stake in Fuping Cement and the 35% interest in the share capital of Shifeng Cement have been sold to West China Cement against are served capital increase making the Italcementi Group the third shareholder of WCC with a stake of approximately 6.25%.
The agreement provides for Italcementi to have a representative on the WCC Board of Directors.
The transaction was based on a valuation of Fuping Cement equal to approximately 87 million euros, gross of the net financial debt of the company, approximately 26 million euros, which is deconsolidated.
West China Cement is a holding company listed in Hong Kong since 2010, which controls a cement production capacity in the regions of Shaanxi and Xinjiang of approximately 20 million metric tons; by the end of the year, this will rise to around 24 million metric tons produced at 15 sites, including Fuping and Shifeng sites.
In 2011 West China Cement recorded net revenues of approximately 380 million euros and net income of approximately 80 million euros.

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