BNBM, a subsidiary of China National Building Material Company Limited,has commissioned the trial run of its production line of gypsum boards in Zhaoqing, boosting the total production capacity of gypsum boards up to 560 million sq.m.

(11 December 2008, Hong Kong) China National Building Material Company Limited (“CNBM” or the “Company”; stock code: 3323) is pleased to announce that BNBM, a lightweight building materials core enterprise under the Company`s control, has commenced the trial production of the production line of gypsum boards in Zhaoqing, Guangdong, the line has an annual production capacity of 30 million sq.m. Thus far, BNBM has in place 25 production lines of gypsum boards and a business scale as much as 560 million sq.m., thereby becoming the largest gypsum board group in Asia.

BNBM is the largest manufacturer of gypsum boards in China. Leveraging on its strengths of sound branding, quality, technology, size and service, BNBM is the exclusive supplier in many state major projects, including the sports halls of the 2008 Beijing Olympics, Terminal 3 of BCIA, the new main building of CCTV and the Shanghai World Financial Centre which is currently the tallest building in China.

Last month, BNBM`s large production line of gypsum boards in the Yangtze River Delta region commenced production in Ningbo, Zhejiang and Taicang, Jiangsu. The production line established in Zhaoqing is by far the largest gypsum board production line in south China. In the latter half of this month, the production line in Guang`an, Sichuan will also be commissioned.

Mr. Song Zhiping, the Chairman of the board of directors of CNBM, said, BNBM has leveraged the national propaganda of desulphurization of power plants. In adherence to its principle of ‘‘staying close to market dynamics, capitalizing on desulphurization of power plants, mapping out reasonable strategies and advocating advanced and streamlined operations’’ in plant construction, it has planned and constructed an array of sizable and modern gypsum board production lines in the east, south, middle and northeast of China in no time. Such move will significantly strengthen BNBM`s market control across the nation and foster upgrades and technological advancement in the local gypsum board industry.

Commenting on the next move, Mr. Song Zhiping pinpointed, As a state-owned building materials conglomerate, the Company will ride on such new trends as ‘‘sustaining growth and promoting development’’ under the national campaign of expanding domestic demand, sparing no effort in developing new building materials, new energy-saving housing and new energy-saving materials, with a view to contributing for a stead-fast economic development in China.

According to the data provided by China Association of Decorative Building Materials, lightweight building materials are in compliance with the industrial policies of the State. As urbanization quickens its pace, the national development of lightweight building materials will hardly slowdown. The consumption of gypsum boards in China merely accounts for 0.5 sq.m. per capita, representing one twentieth of the consumption per capita in U.S.A and one fifteenth of that in Europe. Thus, the domestic demand in China constitutes a huge potential market.