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Qiao Longde: Continue to adhere to two curbs and three cannot wait to achieve win-win situation in the industry.


Release time:

Jun 20,2014

Since the second half of last year, the China Building Materials Federation, together with the China Cement Association and China Cement Network, has jointly launched the "Curb the new cement production capacity and accelerate the research and development of the second generation of new dry cement technology and equipment. On June 20, at the "Forum on Resolving Overcapacity and Improving Efficiency of Cement Enterprises in Southwest China" held in Kunming, Yunnan Province, Qiao Longde, President of China Building Materials Federation, made a speech on the spot. The following is the full text of the speech: Comrades: Our meeting has received the attention and support of the Ministry of Industry and Information Technology of the People's Republic of China, the support and participation of the competent industrial departments of the southwest provinces, and the 12 major rivers in the southwest region.

Since the second half of last year, the China Building Materials Federation, together with the China Cement Association and China Cement Network, has jointly launched the "Curb the new cement production capacity and accelerate the research and development of the second generation of new dry cement technology and equipment. On June 20, Qiao Longde, President of China Building Materials Federation, made a speech at the "Forum on resolving overcapacity and improving efficiency of cement enterprises in Southwest China" held in Kunming, Yunnan Province. The following is the full text of the speech:

Comrades:

This meeting has received the attention and support of the Ministry of Industry and Information Technology of the People's Republic of China, the support and participation of the competent industrial departments of the southwest provinces, the active participation of 12 major cement enterprises and many cement enterprises in the southwest region, and the support and undertaking of China National Building Materials Southwest Company. The purpose of this meeting is to further unify the understanding of the whole industry and implement Document No. 41 and Document No. 23, curbing new cement production capacity and efforts to resolve production capacity, promoting energy conservation and emission reduction in the whole industry, and low-carbon development as the common goal, common task, common responsibility and common action of the national cement industry at this stage. The meeting was held in Yunnan Province, mainly to analyze the situation of cement overcapacity in the southwest region, and to analyze and dissect the situation of continuous price decline in the cement industry due to the continued new production capacity and serious overcapacity of cement in the cement industry, so as to jointly improve the economic benefits of cement enterprises. Although the meeting was held in the southwest, it has a general guiding significance for the whole country. It is to promote the economic benefits of the whole industry through the influence of this meeting.

On May 15, the General Office of the State Council issued Document [2014] No. 23, the core content of which is the action plan for energy conservation, emission reduction and low-carbon development. At a time when the whole country is implementing the spirit of document No. 41 and the cement industry is implementing the low consumption standard and the air pollution emission standard standard, it has added a fire to energy conservation, emission reduction and low carbon. It is not only a crucial task but also a challenge for the cement industry. Therefore, it is the current central task of the industry to mobilize the whole industry to promote the breakthrough and breakthrough of reaching the standard. Therefore, our meeting constitutes three major tasks, namely, unified and complete implementation of the spirit of the two documents; analysis of the current situation, curb new additions, and raise awareness; energy conservation and emission reduction, and low-carbon actions. According to the current overall situation of the cement industry and the purpose of this meeting, I will talk about three aspects.

Unify the understanding of the whole industry, take the implementation of the two documents issued by the State Council as a guide for the development and progress of the industry, as a favorable weapon to solve and resolve the real contradictions existing in the current cement industry, as a magic weapon to control the blind and repeated construction of the industry, as a guide for the continued development of the industry.

The document is a countermeasure based on the current situation and problems of cement and flat glass. It is a concern for the industry and the overall interests of the industry. Who do we not implement? We don't execute who executes? The document is related to the pace of industry structure adjustment and transformation and upgrading, the problem of whether the industry development can take detours, and the current and long-term interests of each existing cement enterprise. Therefore, we must stand at the height of the overall situation, the height of the future of the industry, the height of discipline and politics, keep consistent with the requirements of national documents, unify thinking, unify understanding and unify action.

The 2. continues to adhere to two curbs, that is, resolutely curb new production capacity and resolutely curb the decline in economic benefits.

Among the many contradictions in the cement industry, the new capacity is the main contradiction. The new production capacity has brought a series of problems, making the utilization rate of the existing production capacity lower and lower, resulting in serious waste of investment and low return on output. As a result, the more the total amount of production capacity is reduced, the front door cannot be closed, and the solution has no effect. Causing enterprises to put all their experiences in competition, pay attention to the dynamics of new additions, have no energy to resolve existing assets, and affect the improvement and efficiency of internal skills. Causing unstable cement prices, loss-making enterprises often wander between 1/3 and 1/4. Resulting in repeated construction of similar technologies, taking up space for future technological upgrading and promotion of advanced energy conservation and emission reduction; Causing new waste of resources and energy; As a result, some people who have made policy troubles, people who have made up their names, people who practice fraud, and do not implement the units stipulated by the state to sneak into the cement industry, thus messing up the industry rules. Therefore, the governance of the industry, orderly development, improve efficiency must resolutely curb new capacity.

burn 2. At present, the market of cement industry is unstable, and the state of price fluctuation and benefit decline must be curbed. With the recovery of the cement market in the third quarter of last year, prices in some regions or most parts of the country have fallen one after another this year. What is the reason? In the case of coal continues to decline, profits should have increased, but it is declining. It is wrong to say that the market is not pulling enough. The absolute production volume still increases by 4%-5%. There is no big change in the outside world. Even if there is a change, it should be favorable. But why is the economic benefit developing in a negative direction to form a contrast? The main reason is that although the absolute volume has increased, the market with the increase in absolute volume has been eaten up by the new production capacity, resulting in more oversupply in the market. The second main reason is that when supply exceeds demand, some enterprises, in order to compete and occupy the market, do not hesitate to cut prices, or even fight for money to keep the market and fall prices.

The cement industry has made some profits, but only in the case of simple cost accounting, the so-called cost is raw materials, fuel, labor, financial costs, as for how many years of technological innovation, technical content, technical input, etc., have not been amortized into the cost, that is to say, contributed to the market. Assuming that we extract returns from technological progress as an input, if we include intangible assets and management effects in costs, and then extract new technological research and development, the profits will not be much more. In the past, two tons of coal cost one ton of cement and four tons of cement cost one ton of steel. Now, 10 tons of cement can't buy one ton of steel and 2 tons of cement can't buy one ton of coal. Everyone eats raw materials and consumes energy. Cement prices do not need to be compared with foreign countries. Domestic industries are only recovering and adjusting on a low basis. Therefore, in order to ensure investment, energy conservation and emission reduction, and team stability, we must first ensure industry benefits.

The 3. three can't wait.

First, you can't wait for the new approval system and machine to be worked out before curbing new production capacity in accordance with the regulations.

At present, the State Council, the National Development and Reform Commission, and the Ministry of Industry and Information Technology are all formulating policies to curb new production capacity and resolve production capacity, so that after the decentralization of approval power, there will be a more progressive, more standardized, and more transparent mechanism than before.

The Federation and the Cement Association also actively suggested to government departments that the decentralization of examination and approval authority should not be simply regarded as the decentralization of functions, but should be regarded as the reform of the examination and approval system, with a new set of checks and balances. At the same time, it is also actively promoting the withdrawal of 32.5 composite cement from the market. At present, from the policy level, the standard level has passed two, the next step of tax rebate and construction use standard. In other words, although the examination and approval system is still under revision and reform, document No. 41 has been made clear, and the revision should also comply with document No. 41. Therefore, we cannot wait for a bunch of problems to arise. The cost of governance is higher, the difficulty is greater, and the industry loses more. Therefore, the whole industry should take action.

Second, in terms of energy conservation and emission reduction and low-carbon operation, we cannot wait for electricity prices to be priced differently, cannot wait for carbon trading to be determined, cannot wait for energy conservation and emission reduction to be not up to standard, cannot punish energy conservation and emission reduction, quotas and standards to be reckless, and cannot wait for strict policies to arrive. we must act immediately and take them seriously. we must not delay time due to slow action, it is absolutely impossible to think that there are too many enterprises that do not meet the standards and are not nervous. We should not think that the elimination criteria have not yet come out and lack a sense of urgency. We must start from ourselves and act consciously. Take it as the basic element of survival, as the only pursuit of development and progress, as the social responsibility and the basic responsibility of running an enterprise. Testing and certification of energy conservation and emission reduction, inspection and evaluation of standards, systematic engineering of promotion of technological achievements and consulting services should be formed, new backward definitions and standards should be formulated and energy consumption and emission values should be mainly based on them.

Third, we cannot wait for the rules of market competition to be established and configured, and the market economy is not yet mature and not strictly disciplined. The market economy itself has a long process of maturity and formation. There is no doubt that the policy of adhering to the market economy and the market's allocation of resources play a decisive role. However, the formation of anything has time, stage, region and different national conditions. At present, when there is still a lack of mechanism for resource allocation, a lack of intermediaries in the market, and market supervision, market evaluation and market enforcement are not perfect, we can neither prematurely use the theory of idealized market competition rules. in fact, an unregulated market causes disorderly competition, but we should not fail to exercise self-discipline because the market economy has not yet been standardized, and we should not bump into the red line of anti-monopoly nor cross the bottom line of low-cost dumping, enterprises should exercise self-discipline and jointly maintain the order of the market, jointly fulfill the social responsibility of energy conservation and emission reduction, jointly benchmark in mutual learning, learn from each other in technological progress and management, and respect each other. They should not ignore the rules and regulations and laws because of their interests. Disregard the influence to fight price wars and hurt each other.

Only when the industry is united, the industry is coordinated, and their respective interests are jointly found in the multi-party and multilateral combination point, can they develop together and achieve a win-win situation. It is hoped that large enterprises will take up their responsibilities seriously, stand high, have an industry perspective, have a sense of the overall situation, and resolutely stop what they want to build, accept the cleanup of what they have already built, and stop putting it into production.

In the end, I hope the association will work boldly and work to the ground.