Nov 26 2010
China Advanced Construction Materials Group, Inc. (NASDAQ: CADC) ("China ACM"), a leading provider of ready-mix concrete and related technical services in China, today announced that China State Construction Engineering Corporation ("China Construction" or "CSCEC") (Shanghai SE: 601668) and the Company have signed a strategic alliance letter of intent.
With annual revenue of $38 billion, CSCEC is ranked number 187 in the Fortune Global 500 list of companies.
Under the terms of the agreement, China ACM will serve as the preferred provider of its eco-friendly ready-mix concrete and related engineering services to CSCEC's Second Engineering Bureau Division of its Third Construction Engineering Company Ltd. Both companies agree to "cooperate strategically in international and national markets, support each other and share resources so as to increase their competitiveness in the world construction market."
China ACM will also collaborate with and support CSCEC in the preparation of bids and proposals, provide access to its intellectual property and share capital resources to reduce capital requirements and increase cash flow.
"Signing a 'Strategic Cooperation Letter of Intent' with a major operating division of a company such as CSCEC, a globally ranked stated owned enterprise, holds great importance in China and enhances our leadership position with all existing and potential clients throughout the industry," said Jeremy Goodwin, China ACM president and chief financial officer. "This agreement provides a specific framework for cooperation to improve the competitiveness of both companies in China and worldwide -- across the board from high speed rail to real estate."
Mr. Xianfu Han, China ACM Chairman and Chief Executive Officer, said, "In Asia, market position and relationships are everything -- from which all good new business, sales and opportunities flow. Following our first commercial bank debt financings recently, this agreement is yet another historic milestone for China ACM, as we continue to strengthen our leadership position in the China infrastructure and concrete marketplace."
"We appreciate the CSCEC's trust and confidence, and are entirely confident this agreement will lead to increasing new business with and through CSCEC this year and beyond," Mr. Han added.
China ACM was contracted by CSCEC for ready-mix concrete related services on the prestigious CCTV Headquarters as well as the Beijing Olympics Water Cube.