China must move quickly to reform poorly performing state industries if it is to continue the rapid economic progress seen over the past two decades, the World Bank warned recently. In a report on prospects for China in 2020, the World Bank highlighted deterioration of the financial sector, which faces potential bad debt through exposure to the problem-beset, state-owned industries. Since 1978, output has grown at an average annual rate of 9.3%, and the Bank expects continued rapid growth provided these reforms are implemented.

Redland finally goes quietly After a long and complicated battle with both parties seemingly determined to oppose each other, Lafarge has finally acquired UK-based building materials group Redland plc for a sum thought to be in the region of US$3.02 billion. Lafarge won the British company's backing with a bid of 345 pence per share, and shares of Redland increased 5 pence to 340 as a result of this bid. The purchase both increases Lafarge's aggregates operations substantially and marks its presence in the UK for the first time. However, the UK government, in the form of Department of Trade and Industry (DTI), has made a request to the European Commission that part of the deal be referred back to UK competition authorities in light of the two companies' ready-mix activities. According to a report in the Financial Times, Lafarge has indicated that it is not worried by the DTI's move.

1996 U.S. production up More than 79 million mt of cement were produced by U.S. manufacturers in 1996, according to preliminary statistics produced by the U.S. Geological Survey of the U.S. Department of the Interior. The report sets the results against a total worldwide production of over 1,484.5 million mt and highlights an average value per mt of $71.15. Cement imports into the United States for the period were reported at 11.6 million mt for hydraulic cement of all types and clinker imports ended at 2.4 million mt. According to the report, these national production figures were up 3% compared to the 76.9 million mt reported for 1995.

Holderbank doubles up in Chile Holderbank group company the Chilean Cemento Polpaico SA announced plans to double production from the current 1.7 million mt to 2.5 million mt by 2000. The project includes the construction of a new plant near Vallenar in the north of the country and a new grinding station, including a distribution terminal, near Concepcion in the south. Production at the Vallenar plant will be through a dry process, and the whole project should cost around US$150 million. The two facilities will help establish cost-effective market links especially by sea and should help to prevent any future delivery bottlenecks.

Two Czechs in one The boards of directors of Heidelberger Zement and CBR, a subsidiary of Heidelberger Zement, approved the merger of their Czech cement companies Cement Bohemia and CVM Mokra. The next step in the project will be to submit the plan to shareholders of the two companies. Cement Bohemia, a subsidiary of Heidelberger Zement, operates two cement plants, Radotin and Kraluv Dvur; CVM Mokra also operates two plants, Mokra and Malomerice. Based on figures for 1996, total annual cement sales volumes of the merged entity, which will be named Ceskomoravsky Cement a.s., represent 2.2 million mt.