UPDATE 1-China's Anhui Conch sees Q1 profit steady; vols up

* Cement sales volume up 15 percent in Q1

* Aims to sell 20 pct more cement in 2009

* Focus on investing in central and western China (Add details, background)

HONG KONG, April 6 (Reuters) - Top Chinese cement maker Anhui Conch Cement (0914.HK) said on Monday it aims to sell 20 percent more cement in 2009 and will focus on markets in central and western China as Beijing increases infrastructure investment.

The cement maker is focusing on projects in western China, such as in Sichuan and Chongqing, in a bid to meet cement demand from redevelopment after an earthquake which killed thousands in May last year, executive director Guo Jingbin told reporters.

It will also continue to expand rural markets in central China and its capital expenditure for 2009 would increase by more than half to 8 billion yuan ($1.17 billion) from 5.1 billion yuan a year ago.

"About 50 percent of our capital expenditure (in 2009) will go to central and western China," Guo said, adding the company aims to expand the production capability in the areas. He said demand for cement is expected to expand 6 percent as fixed asset investment grows 15-20 percent.

China's cement industry has been clouded by concerns over rising capacity and slower economic growth that could depress demand.

"Cement prices have bottomed out in the first quarter," Guo said. "We expect the price will continue to go up and will post quarter-on-quarter increase over the rest of year or into 2010."

Guo said the company sold 15 percent more cement in volume terms in the first quarter when price remained soft, and profit for the first quarter is expected to remain steady. But the company may be able to save some 1.6 billion yuan of costs in 2009, thanks largely to lower coal prices.

Anhui Conch, which competes with 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), posted a 5 percent rise in 2008 profit to 2.6 billion yuan ($380.4 million) last week.

It also planned to issue up to 9.5 billion yuan worth of corporate bonds in China, raising capital to repay loans and improve its financial structure.

Shares in Anhui Conch fell 1.3 percent on Monday, compared with 2.7 percent rise on the index for main Chinese companies listed in Hong Kong .HSCE. ($1=6.834 Yuan) (Reporting by Joy Leung and Donny Kwok; Editing by Lincoln Feast)