China ACM's premium ready-mix concrete (RMC) blends are critical to the increasingly complex architectural, commercial and industrial projects in China as well as transportation projects including HSR stations, tunnels, bridges, subway stations, airports and others in which the Company has a strong niche. China ACM offers specialized chemical engineering and production services, sophisticated admixtures, a deep knowledge of local regulation and well established relationships with building contractors, all of which enable the Company to compete effectively.
Unlike cement which is a commodity, concrete is a chemically engineered product -- mixed to particular performance specifications – and that contains cement as one ingredient. China ACM’s premium proprietary ready-mix blends require extensive chemical engineering expertise, are based on a large and growing intellectual property estate, and command high margins for their unique performance specifications.
The Company holds several patents on advanced technologies that help address proliferating green standards. China ACM's green technology uses recyclable materials that meet stringent environmental standards set by the government. As a result, the Company qualifies for a 6% value added tax (VAT) exemption through 2012. The Company also qualifies for a 5% high-tech corporate income tax benefit through 2012 due to the fact that its proprietary mixes have a 100-year warranty versus the industry average of 50 years. These tax benefits are expected to continue as the Company continues to invest in R&D to meet these rising environmental and technology standards required for qualification.
China ACM has a built a strong reputation and an established track record of work on some of the highest profile and most complex projects in China. These include the 30,000 km China HSR expansion, Olympic Stadium Birds’ Nest, U.S. Embassy, French Embassy, Beijing South Railway Station, Beijing International Airport, National Centre for Performing Arts and CCTV Headquarters (see Project Profiles).