NEWS CENTER

China's building materials: to promote the healthy development of the cement industry


Release time:

Apr 22,2014

"China building materials should be the promoter of the healthy development of China's cement industry," Song Zhiping, chairman of China building materials group, said at the "2014 round table meeting of leaders of large cement enterprises" (C12 3 summit of China's cement industry) on March 18, "large enterprises must take the lead in implementing national industrial policies, maintaining market stability, and vigorously promoting technological innovation and energy conservation and emission reduction". With the theme of "resolutely curbing new cement production capacity and taking the lead in achieving environmental energy efficiency standards", the "2014 round table meeting of leaders of large cement enterprises" focuses on thoroughly implementing the spirit of document No. 41 of the State Council in 2013, and conscientiously implementing the newly formulated and revised 《

"China building materials should be the promoter of the healthy development of China's cement industry," Song Zhiping, chairman of China building materials group, said at the "2014 round table meeting of leaders of large cement enterprises" (C12 3 summit of China's cement industry) on March 18, "large enterprises must take the lead in implementing national industrial policies, maintaining market stability, and vigorously promoting technological innovation and energy conservation and emission reduction". With the theme of "resolutely curbing new cement production capacity and taking the lead in achieving environmental energy efficiency standards", the "2014 round table meeting of leaders of large cement enterprises" focuses on the in-depth implementation of the spirit of document No. 41 of the State Council in 2013. We will conscientiously implement the newly formulated and revised emission standards for air pollutants in the cement industry, pollution control standards for collaborative disposal of solid waste in cement kilns and energy consumption limits per unit product.

As the Chinese businessman of the year selected by Fortune magazine in 2013, Song Zhiping has successively created two of the world's top 500 enterprises in the fields of building materials and medicine through market-oriented integration. His industry integration not only promoted the leapfrog development of China's building materials itself, but also promoted the healthy operation of the entire building materials industry.

The stability of the situation is not easy to come by, enterprises need to jointly maintain

"Last year was a very difficult year," Song Zhiping said bluntly about the difficulties faced by the development of the cement industry in 2013: the downward pressure of the economic situation, the adverse consequences of overcapacity, and the anti-monopoly investigations of enterprises. China's cement industry is struggling to move forward amid ups and downs.

"In the second half of 2013, the situation of the whole industry and enterprises began to improve." Song Zhiping admitted.

"When the market is under great pressure, companies cannot have a great impact on stabilizing prices, but when the market is good, they have an impact on product prices." Song Zhiping said that this just proves that there is no monopoly in the cement industry and the right to speak has always been in the hands of the market.

After the storm, the market and enterprises tend to mature, and the industry has made great progress. In the case of general losses in the bulk basic raw material industry in 2013, the building materials industry took the lead out of the market downturn, and the whole industry achieved considerable economic benefits.

"Now I feel that entrepreneurs are more responsible for the industry. Not only can they do well, but they also hope that others can do well and the industry can do well," Song Zhiping said. "The hard-won situation needs to be maintained by everyone".

From limited new addition to limited new creation, from equal elimination to reduced elimination

"The law of the market is the relationship between supply and demand, and the day when supply and demand are balanced will be easier," Song Zhiping said. It is necessary to resolutely limit new production capacity and not to add new production for any reason. It is necessary to completely block the opening of new production from restricting new production to restricting new production.

At present, China is in the critical stage of economic transformation and upgrading, and the main contradiction is overcapacity. Take the cement industry as an example. In 2013, the world's cement production and sales volume was 4 billion tons, China's cement production exceeded 2.4 billion tons, and the total cement production capacity was as high as 3.3 billion tons, which is an astonishing figure.

"Compared with capital investment, total resource consumption, environmental load, and the number of employees, our profit margin is insignificant," Song Zhiping said frankly. In a mature market, production is determined by sales. As big as the market is, companies will produce. The amount.

In this year's "two sessions" Premier Li Keqiang's government work report, in terms of eliminating backward production capacity, Li Keqiang pointed out that for industries with serious overcapacity, environmental protection, energy consumption, technology and other standards will be strengthened, various preferential policies will be cleaned up, and a batch of stocks will be digested., Strictly control the new increase, and emphasize that in 2014, backward production capacity such as 27 million tons of steel, 42 million tons of cement, and 35 million standard boxes of flat glass will be eliminated.

At the end of January 2014, the GB175 "General Portland Cement" standard drafted and revised by the China National Building Materials Research Institute and the draft of the new standard for general Portland cement were released, in which the composite 32.5 strength grade was canceled and the standard review will be completed before June 2014.

Song Zhiping pointed out that the elimination of 32.5 cement should be the same as the elimination of small vertical kilns in the past, and the cement industry should take courage. Song Zhiping believes that in order to eliminate from equal quantity to reduced quantity, the industry surplus must be reduced and eliminated, and only equal quantity elimination is invalid for excess capacity.

"If 3 to 0.5 billion tons of low-grade cement can be withdrawn from the market, our production and sales balance will stabilize and profit margins will increase, which is good for cement companies."

Implementing Staggered Peak Production to Promote Energy Saving and Emission Reduction

Since last winter, my country's haze weather has occurred frequently, covering more than half of the country, and industries such as steel, cement, and coal have become the hardest hit areas for emissions. Therefore, many regions in the above-mentioned industries to implement production restrictions and production measures to alleviate the haze weather. In this regard, Song Zhiping said, "in order to control haze, it is a passive move to limit production and stop production in industries with high energy consumption, high emissions and high pollution, but it is a practical measure."

In the northeast and northern regions, the cement industry has been discussing "production peak". For example, in winter, cement enterprises in Northeast China stop production. On the one hand, the northeast region to burn a lot of coal for heating, the environmental burden is heavy, cement production can ease the pressure of haze. On the other hand, the production of cement in winter is of no practical significance. First, infrastructure projects in Northeast China are basically suspended in winter. Second, the shelf life of cement clinker is two to three months, and the quality of cement clinker cannot be guaranteed in summer, which will lead to construction quality problems. Third, there was a shortage of cement in the past. The cement line with a daily output of 5000 tons produced 6000 tons per day, with a capacity utilization rate of 120, summer production is sufficient to meet the season, there is no need for winter reserves.

Song Zhiping pointed out, "It is a very good idea to combine haze reduction and energy saving to reduce emissions and energy saving. It can also allow everyone to make a reasonable production capacity positioning to meet the market demand of fixed production based on sales." He said, "The wrong peak in the north is the same as the wrong peak for heating and heating in winter, and the rainy and foggy season in the south is also implementing the wrong peak to reduce haze, a move that can be integrated with the public's interests and will be understood by society. All measures conducive to the management of excess and the management of smog should be supported."

Enterprise alliance, capital integration to achieve a win-win situation in the competition and cooperation.

"I think the joint reorganization is still intensified." In Song Zhiping's view, the enterprises in the core profit area of CNBM are not neat enough at present. He believes that if the industry concentration is high, the market will tend to be stable, and there will be no more chaos between enterprises. On the contrary, excessive dispersion will lead to vicious competition.

speaking of joint reorganization, song zhiping advocated vigorously promoting mixed ownership. As of the end of 2013, it was found that of the 66 billion yuan of net assets of China National Building Materials Group, private capital and social capital accounted for 44 billion yuan, and state-owned capital accounted for 22 billion yuan, which is the proportion of 73 yuan. In addition, the vast majority of cement enterprises restructured by China National Building Materials Co., Ltd. have retained 30% of the shares for their original owners.

"The market is connected, and the capital is connected." Under the chain of capital, everyone should actively unite. In recent years, China's building materials is through the holding, equity participation step by step to become stronger.

"While we are developing ourselves, we also respect the interests of brother companies. There is a diplomatic term called 'respect for each other's core interests '". Song Zhiping proposed to introduce the concept of "competition and cooperation" into the cement industry. Enterprises should compete in scientific and technological innovation, management innovation, energy conservation and emission reduction, and cooperate in market health and industry stability.

In the "competition and cooperation" balance, China Building Materials plans to open up the entire cement industry product chain. "It is necessary to take a road of" high-quality, special, commercial mixed, and product-based ". In Song Zhiping's view," only in this way can we increase the added value of products and increase the efficiency of enterprises ".

(Responsible Editor: Wu Wenbo)