Holderbank agreed to acquire 23.4% of the share capital of Shanghai exchange-listed Huaxin Cement Co. Ltd. for about $20 million.

Huaxin ranks among the top three cement producers in China and is considered a leader in cement technology. The company has a strong market position in the Hubei, a key economic region of Central China. The Huaxin plant is located in Huangshi City, about 80 km southeast of Wuhan. The company also holds a stake in a cement grinding facility in Nantong. Huaxin's annual capacity is 1.7 million mt, but a major expansion project currently under way will bring its annual capacity to about 3.5 million mt. The new facility is scheduled to be completed in spring 1999. Total consumption in the province is said to be 22 million mtpy.

Through its New Zealand Group company, Holderbank has held an interest in Suzhou Golden Cat Cement near Shanghai since 1995.

Also in Asia, Holderbank reinforced its presence in the Sri Lankan market by acquiring 51% of the equity capital of Ruhunu Cement Co. Ruhunu operates a grinding plant with an annual capacity of 500,000 mt near Galle, a port in the south of the island.

Since 1996, Holderbank also has held a controlling interest in Puttalam Cement Co., which operates a 600,000-mtpy-capacity cement plant in Puttalam, north of Colombo. In April 1999, Puttalam is set to open an import terminal for bulk cement, which will boost company sales in Sri Lanka to about $95 million in 1999. In contrast to other Asian countries, demand for cement in Sri Lanka rose in 1998 to 2.1 million mt (up 7% from 1997) and is expected to increase further in 1999.