NEWS CENTER

China Building Materials Group to build the cement industry "aircraft carrier fleet"


Release time:

Jan 02,2012

Ten days ago, China National Building Materials Group Co., Ltd. established Southwest Cement Co., Ltd. in Chengdu. This is a further expansion of its cement map following the successful establishment of Zocong Cement, Southern Cement and Northern Cement: in the next 2-3 years, more than 100 enterprises will be reorganized and integrated in the southwest market. "Restructuring comes at the right time." Looking at the many strange and expectant faces in the audience, Song Zhiping, chairman of China Building Materials Group, had mixed feelings and felt that the burden on his shoulders was much heavier. From operating income of more than 2 billion yuan ten years ago and operating in debt to becoming a leading enterprise in the domestic building materials industry and one of the world's top 500 enterprises and operating income

Ten days ago, China National Building Materials Group Co., Ltd. established Southwest Cement Co., Ltd. in Chengdu. This is a further expansion of its cement map following the successful establishment of Zocong Cement, Southern Cement and Northern Cement: in the next 2-3 years, more than 100 enterprises will be reorganized and integrated in the southwest market.

"Restructuring comes at the right time." Looking at the many strange and expectant faces in the audience, Song Zhiping, chairman of China Building Materials Group, had mixed feelings and felt that the burden on his shoulders was much heavier.

From operating income of more than 2 billion yuan and debt management ten years ago to now becoming a leading enterprise in the domestic building materials industry and the world's top 500 enterprises, operating income is about to exceed 190 billion yuan, China Building Materials Group has embarked on a unique path of inclusive growth. Development is nurtured in the value of the industry, and "four or two allocations" has rewritten the fate of the industry.

A contest outside the detached industry

Song Zhiping still can't forget that as soon as he took office in the group ten years ago, he received a summons: the office building of the group company was "folded" due to the debt management of the enterprise and the debt collection by the creditors.

In the face of difficulties, what should we do? "We can't wait to rely on, nor can we complain. Even if you are bruised, you should get up boldly and step into the market." Today, his memories are light and faint.

To the market, where to go? Learn from the bitter experience, China's building materials choose to take root in the big industry: from a new wall materials as the main industry of the unknown enterprises, in the market tide in the turn of the bow, return to cement, glass and other industries mainstream industries, do bulk building materials.

A "seamless" combination of production and research, integrated innovation platform

According to reports, as of November 2011, China's building materials sales revenue reached 173.1 billion yuan this year, an increase of 50 percent over the same period last year, and profits reached 12.7 billion yuan, an increase of 109 percent over the same period last year.

"It can be said that the joint reorganization has enabled enterprises to achieve economies of scale, and scientific and technological innovation has enabled enterprises to achieve considerable development." Song Zhiping said.

In 2005, China National Building Materials Group and China National Building Materials Institute, which is also a central enterprise, were reorganized, and based on it, 12 scientific research institutes within the group were integrated to form China National Building Materials Institute. Yao Yan, general manager of China Building Materials Group and president of China Building Materials General Institute, commented on the "hand-in-hand" of the two: "the reorganization has really brought into play the advantages of all parties and realized the effect of '1 1>2 '. Science and technology have come out of the achievement library and transformed into productivity, and the core competitiveness of the group has been greatly improved".

Relying on the "matchmaking" of the group's technology center, scientific research institutes and enterprises achieve "seamless" docking, and the contribution rate of science and technology to enterprise development continues to increase. The development and application of special cement for nuclear power plant construction has not only solved the bottleneck of technological development for enterprises, but also created good economic benefits. The General Building Materials Institute signed a cooperation agreement with Qufu Zhonglian to establish a research and development base for special cement and special engineering materials. Zhonglian Cement cooperated with Hefei Cement Institute to build two large-scale new dry cement production lines with a daily output of 3000 tons and 6000 tons in Nanyang, Henan Province......

"Today, with economic globalization and the rapid development of science and technology, many innovations in the world are produced through technology integration on the basis of existing technologies." Song Zhiping said: therefore, on the basis of independent innovation, CNBM has stepped up its efforts in integrated innovation, carried out extensive industry exchanges and international cooperation, and made bold attempts and explorations in the acquisition of technical resources.

Through efforts, CNBM has fundamentally reversed the situation in which some key core technologies are controlled by others.

As of 2010, the group has accumulated 1232 valid patents, including 224 invention patents, 766 industrialized patents and 49 cutting-edge technology reserve patents.

The scientific research achievements of CNBM have not only promoted the technological upgrading of the industry, but also been successfully applied to the construction of major projects and projects such as the Beijing Olympic Games, the Shanghai World Expo, the high-speed railway, the three Gorges and weapons and equipment. it has made positive contributions to the structural upgrading of the building materials industry and the construction industry and to the rapid development of the national economy.

"As a competitive central enterprise, China's building materials can achieve today's development, mainly because it has been following the market law and the internal logic of industry development." Song Zhiping said, "During the 'Twelfth Five-Year Plan' period, my country will face a new round of economic restructuring. China National Building Materials will seize the opportunity to further fulfill the responsibilities of central enterprises, promote the development of the industry, and make profits for the country and the people."

However, at that time, the building materials industry was "big but not strong": although the industry's income and asset scale were on the order of trillion yuan, it had overcapacity, scattered enterprises and meager benefits. Take the cement industry as an example. In 2006, there were more than 5000 cement companies in my country, and the output of the top ten companies only accounted for about 15% of the country's total cement output.

To make matters worse, vicious competition has plagued the industry. Hundreds of cement plants in Zhejiang have "scuffled", cement prices have dropped from more than 400 yuan to more than 200 yuan, and the industry has suffered serious losses as a whole.

The building materials industry is in urgent need of integration. No one thought that China National Building Materials Group could "jump" the industry to look at the industry, seize the major opportunity of industry structural adjustment, and explore a new way to obtain scale advantages through joint reorganization, achieve energy conservation and emission reduction through technological progress, restrain vicious competition through market coordination, and improve profitability through management integration, which not only realizes the great-leap-forward development of enterprises, but also promotes the transformation, upgrading and sustainable development of the industry, leading the building materials industry ideas and development mode of change.

Now it seems that this requires not only strategic vision, but also courage:

In Zhejiang, where the cement price war is the fiercest, many companies are already a burden to the government. Industry associations are trying to integrate but are powerless, while China Building Materials has taken the initiative to "wade" this muddy water.

In 2007, China Building Materials, which did not have a production line and did not produce a bag of cement in the southern region, established Southern Cement Co., Ltd. and reorganized 150 enterprises, of which 65% were private enterprises, 15% were local state-owned enterprises, and about 20% were mixed joint-stock enterprises. Three years later, Southern Cement's production capacity has expanded from 30 million tons at the time of its establishment to more than 0.12 billion tons.

This requires not only courage, but also courage:

In the field of cement, CNBM has set up four core strategic areas of Huaihai, southeast, north and southwest. This year, the cement business scale will reach 0.25 billion tons, ranking first in the world. It is planned to have a market share of 20% to 25% of the domestic cement market by the end of the 12th Five-Year Plan. In the field of glass, Luobo Group and Zhonglian Glass were reorganized, with the total production capacity of glass business exceeding 40 million weight boxes, ranking first in the country; in the field of light building materials, the reorganization of Taishan gypsum, gypsum board with a total production capacity of 1.1 billion square meters, ranking the top three in the world......

This requires not only courage, but also tolerance:

During the "Eleventh Five-Year Plan" period, CNBM focused on its main business, strengthened joint reorganization and management integration, reorganized 337 companies across ownership, regions, and industries, and withdrew from 165 disadvantaged companies. So far, no company has "retired" and no "top leader" of a joining company has voluntarily resigned. This excellent practice case has entered the case library of Harvard Business School in the United States and has become a model for global business leaders and business school students' management practice innovation.

A pool of green water integrated into the strength of central enterprises and private vitality

China Building Materials is popular with such a formula: the strength of central enterprises, the vitality of private enterprises = the competitiveness of enterprises.

China National Building Materials creatively proposed and implemented the dynamic mechanism of "central enterprises and market operations", that is, while adhering to the attributes of central enterprises and state-owned enterprises, it establishes a management system and operating mechanism that meets the requirements of the market economy, and realizes the relationship between central enterprises, private enterprises, foreign-funded enterprises and other enterprises of different ownership Inclusive growth.

China National Building Materials believes that central enterprises and private enterprises are cooperative and symbiotic relations. "Private companies come in to retain their past wildness. We advocate tolerance, not to defeat anyone." Song Zhiping told reporters.

For restructured enterprises, the group adopts the "seven-three principles": to establish a diversified share system controlled by central enterprises, with China Building Materials holding 70% and private enterprise entrepreneurs holding 30%.

"In this way, the market mechanism will be truly introduced into the central enterprises, and a small amount of state-owned capital will be used to drive a large amount of social capital and jointly promote the development of enterprises." Song Zhiping said.

As a result, people have seen an incredible phenomenon in China Building Materials: the bosses of private enterprises, who used to get up early and work late all day to make money for themselves, have now become professional managers of China Building Materials, but they still work in a star-wearing manner, even more dedicated than in the past.

It is understood that China Building Materials Headquarters has only 80 employees, while the group has 110000 employees. How to manage the 100 reorganized enterprises to avoid the chaos?

To this end, CNBM has established a clear functional level. The whole group is divided into three levels: the headquarters is the decision-making center, responsible for making strategy and investment decisions; Each business platform is the profit center, responsible for channel development and market sales; Each production enterprise is the cost center, responsible for energy saving and cost reduction.

The Group has established a standardized governance structure and built a strategic performance-oriented board of directors. Among them, the majority of outside directors, they come from banks, governments, universities, companies, and even foreigners. "Clarifying the responsibilities and rights of the board of directors and managers makes decision-making more open and transparent." Song Zhiping said.

In order to enable enterprises with different ownership and different cultural backgrounds to integrate as soon as possible, the group implements the "three-five" management model, the core of which is integration and digitization, and maximizes benefits by integrating advantages, unifying the market, centralized procurement, and benchmarking.

Chinese building materials in the new entry of the enterprise to send counselors, to help standardize the management system. For example, after Zhonglian Cement acquired Taishan Cement, it sent five counselors to reverse the company's loss of more than 6000 million yuan in the first half of the year, and achieved a net profit of more than 7000 million yuan in the second half of the year.

"The important thing in the joint reorganization is not the joint of capital, but the maximum mobilization of people's enthusiasm." Song Zhiping said.

"When we interviewed your grassroots companies, we found a very interesting phenomenon: every company said the same thing as you." A reporter told Song Zhiping this. "That's right! It shows that we have recognized our corporate culture and truly integrated into the big family of Chinese building materials." Song Zhiping said.