Cement investment does not cool down. Development and Reform Commission reiterates strict control of new production capacity

The investment impulse of the Chinese cement industry is further suppressed.

In recent years, the relevant government departments have stepped up efforts to phase out the backward production capacity of the cement industry, and will basically complete the elimination of backward tasks in 2012. However, in the face of the severe situation of national overcapacity in the “12th Five-Year Plan” period, the National Development and Reform Commission is concerned. The person yesterday (March 29) had to reiterate the strict control of production capacity and increase the intensity of mergers and acquisitions.

Cement Investment in 2011 Nearly 150 Billion Yuan Kong Xiangzhong, secretary-general of the China Cement Association, summed up the cement industry development situation in China in 2011 at the China International Cement Summit yesterday. Cement investment did not cool down last year. The data shows that under the strict control of the national policy on the new production capacity of the cement industry, although the investment amount has dropped by 8.29% in 2011, the country's cement has still accumulated a total investment of 143.9 billion yuan. According to the investment situation in various provinces and cities, due to the unrestricted new production capacity in Xinjiang, its investment and growth rate are all ranked first, with an investment of nearly 10 billion yuan, a growth rate of 93%, and Hebei, Inner Mongolia, Anhui, Hunan, and Henan Investment in other places also exceeded 7 billion yuan.

While investment continued to grow, cement production in 2011 increased from 1.88 billion tons in the previous year to 2.09 billion tons, an increase of 11% over the same period of last year. After an interview with the “Daily Economic News”, Kong Xiangzhong predicted that the cement output in 2012 It will still hit a record high and maintain a growth rate of about 8%.

Strict control of new production capacity to encourage mergers and reorganization It is understood that the country's efforts to phase out the backward production capacity of cement will further increase this year, this year also issued an indicator to eliminate 370 million tons of capacity of backward cement and small grinding stations.

The data shows that China's new dry process cement has taken an absolute position. In 2011, the capacity of the new dry process cement has reached 2.598 billion tons, but last year, the actual domestic cement consumption was 2.085 billion tons, and the surplus level reached 24.6%.

"This shows that China's new dry-process cement can not only meet the construction needs, but also has excess." Cui Xingtai, vice president of China Building Materials, analyzed the demand situation in 2012. He said that there are 216 production lines under construction in 2012 and it is expected to be completed and put into production by 2013. By then, the new dry-process cement will reach 3.133 billion tons. “Assume that the demand in 2013 will increase to 2.4 billion tons, and the surplus will reach 30.54%. ".

To this end, Liu Ming, Director of the Industry Coordination Department of the National Development and Reform Commission, reiterated at the conference the policy of strictly controlling new production capacity. “Suppressing the excessive growth of cement production capacity is still our main task, and we must strictly control the new cement investment.” Liu Ming stated that in the preparation of the key industrial productivity layout plan, the NDRC has considered the actual situation of provinces with more backward cement production capacity. It is proposed to rationally allocate large-scale new dry-process lines in accordance with the principle of not increasing the total cement volume, completely eliminating backward cement, controlling total energy consumption, and reducing pollutant emissions.

At the same time, Liu Ming believes that "mergers and reorganizations will increase the degree of production concentration." He said that this will lead to the formation of a number of regional market-leading companies, and strengthen self-discipline in the industry, allowing the return of cement value.

“The upstream aggregates and the downstream extensions to the commodity concrete and cement products industry will not only increase the added value of products, but also greatly enhance the competitiveness of enterprises.” Liu Ming stated that the state encourages related investments and supports the advantages With the above-mentioned industrial chain extending activities of cement clinker main business at the same time.