Anhui Co organsin hochzeit nch to cut capex; stimulus to aid industry

HONG KONG, Feb 10 - Top Chinese cement maker Anhui Conch Cement Co Ltd <0914.HK> will cut planned capital spending in 2009 by 30 percent to 7 billion yuan ($1.03 billion) as some projects are behind schedule, a senior executive said.

China's cement industry has been clouded by concerns over fast capacity growth at home as supply risks outpacing demand as economic growth in the world's third-largest economy slows.

But the company believes China's 4 trillion yuan stimulus package to boost domestic demand will benefit the industry as a whole, executive director Guo Jingbin told Reuters by telephone on Tuesday.

Anhui Conch <600585.SS> spent 5 billion yuan in capital investment expenditure last year, or 29 percent below its original plan of 7 billion, Guo said.

"The progress of some projects are slower than expected due to external reasons, such as government approvals," Guo said.

The company is the biggest among a clutch of local players such as China National Building Materials <3323.HK> and foreign operators such as LaFarge's <LAFP.PA> venture with Shui On Construction <0983.HK>. ($1=6.830 Yuan)