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Huaxin Building Materials announced the acquisition of CSN CIMENTOS, Brazil’s second largest cement company. If the transaction is completed, it will become an important milestone for the Chinese cement company to enter the Brazilian market for the first time and consolidate its South American layout and overseas production capacity advantage.
Chinese cement giant Huaxin Building Materials announced its acquisition on the 8thbrazil Shares of CSN CIMENTOS, Brazil’s second largest cement producer, with approximately 21% of the Brazilian market. If the acquisition is successful, it will be the first chance for Huaxin Building Materials and even a Chinese cement company to enter the Brazilian market, and it will also be a milestone in opening up the South American building materials sector.
Huaxin Building Materials announced that it has signed an “equity acquisition agreement” with Brazil’s National Steel Corporation (CSN) and plans to acquire its 99.99% stake in CSN CIMENTOS BRASIL SA (National Steel and Cement Company of Brazil) for an estimated R$9.0337 billion (equivalent to approximately US$1.642 billion).
Huaxin Building Materials said the signing of the exclusive agreement marks an important advancement in the company’s overseas M&A strategy. If this transaction is successfully completed, it will help the company further optimize its global production capacity layout and increase the share and core competitiveness of its cement business in the South American market.
It is reported that the Brazilian National Steel Cement Company owns 7 furnace line factories and 6 grinding stations. The total cement production capacity reaches 17 million tons per year, which is approximately 21% of the Brazilian market share. Limestone reserves are approximately 2.2 billion tons. The main force covers the two main markets of Northeast and Southeast Brazil. As of June 30, 2026, it had total assets of US$2.446 billion and shareholders’ equity of US$1.287 billion. Affected by the financial difficulties of the original holding group, financing costs were high, and it suffered a loss of US$11.81 million in the first half of 2026.
By the end of 2025, Huaxin Building Material ranked sixth in the clinker production capacity list of Chinese cement companies, with a clinker production capacity of about 87.34 million tons per year, and sales volume ranked fifth with about 61.96 million tons, slightly higher than Taiwan Cement. And it has special advantages abroad. By the end of 2025, its foreign-invested clinker production capacity is about 26.598 million tons, ranking first among Chinese cement companies.
For Huaxin Building Materials, China’s domestic building materials industry has entered a period of stock adjustment. Seeking scale and returns from abroad is a common strategic choice for leading companies. Huaxin Building Materials’ revenue in the first three quarters was 29.690 billion yuan and net profit attributable to parent companies was 2.826 billion yuan, an annual increase of 41.05%.
Summary FAQ
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Huaxin Building Materials plans to acquire CSN CIMENTOS BRASIL SA, a subsidiary of Brazilian National Steel Company CSN, which is the Brazilian National Steel and Cement Company, with an acquisition ratio of 99.99%.
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The announcement shows that the transaction is estimated to be worth approximately 9.0337 billion Brazilian Reals, equivalent to approximately US$1.642 billion. CSN CIMENTOS is Brazil’s second largest cement manufacturer, with an annual production capacity of approximately 17 million tons and a market share of approximately 21%.
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Huaxin Building Materials believes that China’s domestic building materials industry has entered a period of stock adjustment, and seeking scale and returns overseas is an important direction. If this time is completed, it will optimize global production capacity allocation and enhance South American market share and competitiveness.
