Lafarge Shui On Cement The joint venture is the cement market leader in Southwest China and the seventh largest player nationwide.   LSOC's total production capacity reached 24 million tonnes per annum at end of 2007. Sustainability and safety are held to be of paramount importance at LSOC. Dingxiao Cement Plant, Guizhou Dujiangyan Cement Plant, Sichuan LSOC aims to boost new dry-kiln capacity and its market dominance. LSOC successfully acquired Sichuan Shuangma. SOCAM and Lafarge signed the Agreement with Yunnan Government to boost its expansion in the Chinese Mainland.           In November 2005, SOCAM and Lafarge, the world leader in building materials, announced a joint venture partnership to merge their cement operations in China. The joint venture, named Lafarge Shui On Cement Limited (LSOC), is 55% owned by Lafarge and 45% owned by SOCAM. The alliance immediately established a new cement leader in the Southwest region, one of the Mainland's largest and fastest growing areas. It combines Lafarge's global expertise in cement technology and operational management with SOCAM's experience and reputation in the Chinese market. With SOCAM chairing the board and Lafarge managing the business operations, LSOC is quickly expanding production and has become the cement market leader in Southwest China, with 24 million tonnes of capacity spanning Chongqing, Sichuan, Yunnan, Guizhou and Beijing. LSOC's vision in China is to be one of the top operators in the field, adopting world-class standards of safety, environmental protection and technology. LSOC is determined to step up the pace of the development in China. The Chinese markets in which LSOC operates are enjoying sustainable growth and it is believed taking into account the capacity expansion programme currently underway in the four provinces of Southwest China - Yunnan, Guizhou, Sichuan and Chongqing. Expansion Plans LSOC is making good progress with its capacity expansion plans. Construction of the third line in Dujiangyan, Sichuan and the new dry kilns in Yongchuan, Chongqing and Sancha, Guizhou are on schedule with completion expected in mid 2010. This additional capacity of 13,800 tonnes per day (tpd) will further strengthen LSOC’s leadership position in Southwest China. Another five dry kilns with an aggregate capacity of 17,500 tpd in strategic locations in Sichuan, Chongqing and Yunnan will commence construction in due course. A number of other new projects in LSOC’s core operating region are also on the drawing board and applications for government approvals are well under way. Assets Injection The proposed injection by LSOC of its 50% interest in the Dujiangyan plants into Sichuan Shuangma Cement in consideration for new shares issued by Shuangma is in progress.