After the announcement early December from Huaxin Cement, on the acquisition of cement assets in Nigeria to expand into the West African market, another announcement on December 16 was released about the transaction of $186.6 million to acquire four aggregate quarries in Brazil.

Overseas expansion is one of the key strategies of Huaxin. Under the pressure of domestic cement business performance, overseas business has become an important pillar for the Company performance. The Acquisition is an important step in the implementation of the Company’s strategy of geographic and business line diversification. It represents a further expansion of the Company in emerging markets and it’s a special milestone for the Company to develop in the building materials market in South America, as it is the first entry by the Company – and by any major Chinese cement producer - into Brazilian building materials market.

The target Company has four quarries with a total capacity of 8.8 million tons of aggregates per year (6.2 million tons of aggregate production in 2023) in the metropolitan area of Sao Paulo which is the economic center of Brazil. The four quarries have excellent locations relative to their target market of the metropolitan area of Sao Paulo and have significant resources of mineable material.

Brazil has the largest economy of Latin America, with rich natural resources, a friendly environment for foreign direct investment, and overall a significant potential for economic development. Brazil is the first Latin American country which has established a comprehensive strategic partnership with China. Huaxin is positive about the economic development prospects in Brazil. It will make full use of its rich and successful experience in integrating and developing acquired companies as well as transferring industrial, technical and management capabilities to further enhance the performance of the four quarries to achieve performance growth.

Huaxin is committed to becoming a world-class multinational building materials enterprise. Today, Huaxin owns and operates more than 20 large-scale cement and related factories in 12 countries in Central Asia, Southeast Asia, South Asia, the Middle East, and Africa. At the same time, it has developed the export of engineering services, equipment, and spare parts, achieving good social and economic benefits in China as well as in the target countries, and becoming a successful role model of Chinese enterprises' "going global".