Doklestic Repic & Gajin has advised Beijing New Building Materials Plc on the transaction with the Coal Mine and Thermal Power Plant Ugljevik for the creation of a EUR 50 million gypsum board joint venture. China's Shihui Partners reportedly advised BNBM on the deal as well.
BNBM is a Chinese gypsum board company that was established 43 years ago. It currently has nearly 80 gypsum board production lines in China, Tanzania, Uzbekistan, Egypt, and Thailand, with a production capacity of about 3 billion square meters.
The Coal Mine and Thermal Power Plant Ugljevik (RiTE) is a subsidiary of state-owned utility company Elektroprivreda Republike Srpske.
According to DR&G, the joint venture “envisages the establishment of a joint venture company in Ugljevik, Republika Srpska, Bosnia and Herzegovina, which will be co-owned by BNBM (90%) and RiTE (10%). The company will build a factory for the production of gypsum board construction products. The annual output of the factory is projected to be 40 million square meters of gypsum boards ... The factory will consume the gypsum obtained from the flue gas desulfurization systems of RiTE and is expected to employ around 100 workers.”
According to the firm, “more than 90% of the gypsum board products will be exported to meet the demand for gypsum board products in the European market.”
DR&G’s team was led by Partner Slobodan Doklestic and included Partners Marko Repic, Ljubinka Pljevaljcic, and Milos Pandzic, Senior Associate Aleksandra Stojanovic, and Attorney Bojan Peulic.