Green Island Cement

Green Island Cement is a Hong Kong building-materials company whose origins date to the late nineteenth century. It was established at Ilha Verde, or Green Island, in Macau in 1886 with British investment and became the first manufacturer of Portland cement in the region. The company’s early production used locally dredged coral and imported limestone in lime kilns, giving it a direct connection to the construction needs of Macau and the developing settlements around the Pearl River Delta. The company expanded into Hong Kong during a period of rapid colonial development. A second factory was established in Hung Hom in 1898, after Britain assumed control of the New Territories. Cement produced locally helped support the construction of buildings and infrastructure, while the business also developed export-related activities, including the production or supply of encaustic glazed floor tiles. In 1925, the firm moved its operations to Hok Un in Hong Kong and later became a British company. It was a significant local employer for many decades. Green Island Cement’s ownership changed substantially in the late twentieth century. Li Ka-shing acquired a 25 percent interest in 1978 and increased his holding to 40 percent the following year, becoming chairman of Qingzhou Yingni. In 1988, Cheung Kong Holdings announced a comprehensive acquisition intended to take the company private. Cheung Kong Holdings held 44.6 percent before the offer, and the transaction was completed through the acquisition of approximately 95 percent of the equity followed by compulsory acquisition. Green Island Cement was subsequently delisted from the Hong Kong Stock Exchange. The transaction also enabled Cheung Kong Holdings to obtain a substantial Hung Hom factory site for future property development. Today, Green Island Cement operates as a wholly owned subsidiary of Cheung Kong Infrastructure Holdings. Its activities include cement manufacturing and supply, ready-mixed concrete, aggregates, quarrying, and the transportation of its own products by ship. The company operates six concrete plants in Hong Kong with a combined eleven production lines, as well as three quarries in Hong Kong and three in mainland China, according to the cited reference material. Its Tap Shek Kok facility in Tuen Mun is described as Hong Kong’s only integrated cement-products manufacturing plant and supplies a significant share of the local market. The company also has clay-manufacturing operations in Hong Kong and in Yunfu and Shantou in mainland China, while limestone is mined and exported from Siquijor Province in the Philippines. Green Island Cement therefore combines a historic Hong Kong construction-materials brand with an industrial supply network extending across southern China and Southeast Asia.

Green Island Cement traces its history to Ilha Verde, the Portuguese name for Green Island in Macau. The company was established there in 1886 with British investment and became the first manufacturer of Portland cement in the region. Its earliest production relied on lime kilns fired with locally dredged coral and imported limestone. This location gave the enterprise access to the developing markets of Macau, Hong Kong, and the wider Pearl River Delta, where inexpensive locally produced cement supported an expanding program of construction. The business established a second factory in Hung Hom in 1898. This expansion followed Britain’s assumption of control over the New Territories under the Second Convention of Peking and placed the company closer to Hong Kong’s growing urban and infrastructure market. Cement availability contributed to the development of the surrounding area, and the company also had export-related activities, including the production or supply of encaustic glazed floor tiles. For many years, Green Island Cement was a major employer and an important industrial presence in Hong Kong. In 1925, the company relocated to Hok Un in Hong Kong. It became a British company not long afterward, maintaining a long-term role in the region’s building-materials economy. Its later business developed around cement manufacturing and related construction supplies. The company’s historic operating base and facilities also became strategically important because of the value of industrial land in Kowloon. Ownership shifted in the late 1970s. Li Ka-shing held a 25 percent stake in Qingzhou Yingni in 1978, increased his interest to 40 percent in 1979, and became chairman. In October 1988, Cheung Kong Holdings announced a comprehensive acquisition designed to privatize the company. Cheung Kong Holdings already owned 44.6 percent of the shares. The announced purchase price was 20 yuan per share, compared with a market price of 17.7 yuan, representing a reported 13 percent premium. The transaction involved a reported HK$1.123 billion. By 30 December 1988, Cheung Kong Holdings had acquired 95 percent of the equity and completed the privatization through compulsory acquisition. Green Island Cement was subsequently delisted from the Hong Kong Stock Exchange. The acquisition also gave Cheung Kong Holdings control of a substantial Hung Hom factory site intended for later property development. Under its current ownership structure, Green Island Cement is a wholly owned subsidiary of Cheung Kong Infrastructure Holdings. The company’s operations extend beyond a single cement plant. It operates six concrete plants in Hong Kong with a total of eleven production lines and has three quarries in Hong Kong and three in mainland China. Its Tap Shek Kok facility in Tuen Mun is described as Hong Kong’s only integrated cement-products manufacturing plant and accounts for about one-third of the Hong Kong market according to the cited reference. The company also operates clay-manufacturing plants in Hong Kong and in Yunfu and Shantou in mainland China. Limestone is mined and exported from Siquijor Province in the Philippines, while shipping capacity is used primarily to transport the company’s own products. These activities make Green Island Cement both a historic Hong Kong brand and a regional construction-materials operator serving Hong Kong and southern China.

• 1988

  Privatization and delisting

  [1]Green Island Cementen.wikipedia.org

  Cheung Kong Holdings completed the acquisition of approximately 95 percent of the equity, used compulsory acquisition to complete the transaction, and took Green Island Cement private.

• 1979

  Li Ka-shing became chairman

  [1]Green Island Cementen.wikipedia.org

  Li Ka-shing increased his holding to 40 percent and became chairman of Qingzhou Yingni.

• 1978

  Li Ka-shing acquired a substantial stake

  [1]Green Island Cementen.wikipedia.org

  Li Ka-shing acquired a 25 percent interest in Qingzhou Yingni.

• 1925

  Operations relocated to Hok Un

  [1]Green Island Cementen.wikipedia.org

  Green Island Cement moved its operations to Hok Un in Hong Kong.

• 1898

  Second factory established in Hung Hom

  [1]Green Island Cementen.wikipedia.org

  The company opened a second factory in Hung Hom, Hong Kong, expanding its production presence near the growing local construction market.

• 1886

  Company founded in Macau

  [1]Green Island Cementen.wikipedia.org

  Green Island Cement was established at Ilha Verde in Macau with British investment and began producing Portland cement in the region.

A long-established regional supplier of cement and construction materials, emphasizing local manufacturing capability, integrated production, quarrying, concrete operations, and supply to Hong Kong’s construction sector.

• Cement · 1886

  Portland cement

  The company’s historic core product. Green Island Cement began as a regional Portland-cement manufacturer in Macau and later developed cement production and supply operations serving Hong Kong and southern China.

• Concrete

  Ready-mixed concrete

  Green Island Cement operates concrete plants in Hong Kong. The cited reference identifies six plants with a combined eleven production lines, supporting the supply of ready-mixed concrete to the local construction market.

• Quarry materials

  Aggregates

  Aggregates form part of the company’s construction-materials portfolio and are supported by quarrying operations in Hong Kong and mainland China.

• Industrial minerals

  Clay and mineral materials

  The company has clay-manufacturing operations in Hong Kong and in Yunfu and Shantou in mainland China. These operations support its broader cement and building-materials activities.

• Building finishes

  Encaustic glazed floor tiles

  In its earlier history, the company developed export-related capacity connected with encaustic glazed floor tiles. The reference material does not establish that this remains a current product line.

• 1988

  Decision to privatize Green Island CementM&A

  Background

  Cheung Kong Holdings was already the largest shareholder when it announced a comprehensive acquisition of the remaining equity. The stated offer was 20 yuan per share, compared with a reported market price of 17.7 yuan.

  Action taken

  Cheung Kong Holdings acquired approximately 95 percent of the equity by 30 December 1988 and completed the transaction through compulsory acquisition, resulting in privatization and delisting.

  Aftermath

  Green Island Cement ceased to be listed on the Hong Kong Stock Exchange. Cheung Kong Holdings also obtained the Hung Hom factory land for future property development. The company later operated as a wholly owned subsidiary of Cheung Kong Infrastructure Holdings.

  Reported acquisition consideration. HK$1.123 billion transaction value; Cheung Kong Holdings held 44.6 percent before the offer → Approximately 95 percent of the equity acquired by 30 December 1988 (1988)

  Source

1. 1Green Island Cementen.wikipedia.org