China Tianrui Group Cement Company Limited is a leading clinker and cement producer in Henan and Liaoning provinces in terms of production volume as of December 31, 2010. We are primarily involved in the excavation of limestone and the production,sale and distribution of clinker and cement.
Our production scale has grown significantly over the years thanks to governmental support and favorable industry policies. Our annual clinker and cement production capacities reached 22.2and 35.2 million tonnes at June 30, 2011, respectively, making us the tenth largest cement producer in terms of production volume and the eleventh largest clinker producer in terms of production capacity in China.
Our strong market position is further enhanced by our “天瑞TIANRUI” brand name. It is renowned for quality and recognized as a “Chinese Famous Trademark”,helping us to win tenders and be a primary cement provider for many high-profile large-scale infrastructure projects in China, such as the South-North Water Transfer Project (南水北调工程), Ha’erbin-Dalian Express Railway (哈大高铁) and Shijiazhuang-Wuhan Express Railway (石武高铁).
We currently operate 18 production facilities that service approximately 82 cities and counties in Henan, Liaoning and Anhui provinces. Our cement grinding facilities are near end-markets, giving us broad market coverage with relatively lower logistics and transportation costs. Our clinker production lines are near our 33 limestone quarries, giving us an uninterrupted supply of high-quality limestone for cement production.
We enjoy significant cost advantages from our production, marketing and management models. Our residual heat recovery systems, for example, saved us approximately 82% in electricity costs in 2010. Meanwhile, our efficient operational management continuously maintains our production utilization rate at a high level.
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