Shanshui Group

completed

The Jinan Shanshui Group (SSG or the company) is the second largest cement manufacturer in China based in Jinan, Shandong. SSG has a total cement production capacity of 13.4 million tons per year and owns 12 cement facilities, all of which are located in Shandong. The company was established in 1996, and was until recently, a state-owned enterprise directly owned by the Jinan Municipal Government. Chuangzin Investment (CX) was established in 2001 as a private investment vehicle for SSG management and staff who owned 94% of CX, with the other 6% was owned by SSG itself. In October 2004, after SSG received approval to restructure and reorganize, the company began the process of privatization, whereby SSG was taken over by CX (with CX as the surviving entity), and the management and staff became the legal owners of the company. The project consists of three main components aimed at assisting SSG: - to merge with Chuangxin Investment (CX), privatize and restructure its cement operating companies; - consolidate its cement operations in its home province of Shandong through expansions and new investments; and - debt restructuring.