(Yicai Global) Dec. 23 -- A Beijing New Building Materials subsidiary plans to spend CNY186 million (USD26.5 million) to build three new production lines in Egypt as it looks to ramp up international sales.
Tai Shan Gypsum will form a local unit and set up the lines in the Economic Zone North West of Gulf Suez, with construction taking around 18 months once it begins, the company said in a statement on Dec. 20. It expects the facilities to generate an internal after-tax return of nearly 20.8 percent once they reach design capacity.
Shares in Beijing New Building Materials [SHE:000786] leapt on the news, closing nearly 4 percent higher at CNY24.24 (USD3.46).
The lines will produce 35 million square meters of gypsum plasterboard, 6 million square meters of decorative gypsum board and 10,000 tons of light gauge steel joists a year, the statement added. The output will mostly sell in Egypt and the surrounding countries.
Editor: James Boynton