June 24 – China’s cement producers have begun building plants overseas, reports China Business News.

Henan Tongli Cement (000885) intends to raise no more than 804 million yuan to fund two cement production lines in Yima city, Henan province and Mozambique. Remaining funds will repay bank loans.

Hebei Jidong Development Group is China’s first cement company to construct a cement plant outside the country. Jidong Development and China-Africa Development Fund jointly created a cement plant in South Africa in October 2010. The plant, which costs a construction period of two years, will have a daily cement production capacity of 2,500 tons once operational next year.

An insider at China National Building Material Group Corporation also said the company may aim to invest in foreign markets in the short run.

Domestic cement prices have ranged from 200-400 yuan per ton in recent years due to overproduction, while the price in the overseas market is much higher. Cement production volume reached 1.868 billion ton in 2010, up 15.53 percent from 2009.

Shares of Henan Tongli Cement (000885) rose 3.56 percent to trade at 16 yuan at morning close today.