KUALA LUMPUR: YTL Group is refocusing on cement opportunities in Asean, its executive chairman Tan Sri Francis Yeoh said.
Yeoh said this in relation to the sale of a 100 per cent equity interest in Zhejiang Hangzhou Dama Cement Co Ltd (Dama Cement).
Dama Cement is 100 per cent-owned by YTL Cement (Hong Kong) Ltd, which in turn is 98-per cent owned by YTL Corporation Bhd.
YTL Cement has finalised the disposal of its entire stake in Dama Cement.
Yeoh told the New Straits Times that this sale with a positive bottom-line prepared the group with opportunities and allowed it to focus on growth in the region.
YTL Cement invested in Dama Cement in 2007 and developed it into one of the most environmentally friendly and sustainable plants in the region.
The group has seen aggregate returns of about 1.3 billion renminbi and profits of about RM250 million since then.
Yeoh said this was an ideal time for YTL Group to make an exit given the current highly attractive valuation of the business.
Dama Cement owns a cement plant in the Lin'an district of the Zhejiang province in China.
It primarily makes and sells ordinary portland cement, clinker, and related products.
"Through our investment in China, the largest cement producer in the world, we have been able to enhance our existing capabilities and build on our knowledge of the industry," he said in a statement today.
Yeoh said learning from its advanced technology, operational know-how, procurement, logistics, and distribution systems, the divestment was part of the YTL Group's strategy to concentrate on achieving a similar position of leadership in its key domestic, export and regional markets.
YTL Cement group managing director Datuk Seri Michael Yeoh Sock Siong said the disposal was well-aligned with the company's focus on establishing itself as an industry leader in the regional cement market.
"Dama was our first substantial foray into China's cement industry, a major supplier in Hangzhou. The vital insight and knowledge that we have gained will be used in our plans to expand our operations within Southeast Asia," he said.
YTL Corp' cement business is undertaken via YTL Cement, operating in Malaysia, Singapore, Vietnam and Myanmar.
The group expanded its Malaysian operations in 2019 when it acquired the majority stake in Malayan Cement Bhd, formerly Lafarge Malaysia Bhd.
YTL Corp shares closed unchanged at 70.5 sen today.