NEWS CENTER

Cement industry: optimizing industrial structure is the key


Release time:

May 04,2013

Promoting enterprise merger and reorganization is an important measure to promote industrial transformation and upgrading and accelerate the transformation of development mode, but overcapacity is still a "blocker" of transformation and upgrading ". Taking cement as an example, after more than 10 years of development, the cement industry, which is the foundation of the country, has also developed from "high temperature in summer" to "severe cold in winter". On the one hand, the state frequently issues documents to control production capacity, but it seems that the policy fails and still cannot handle the stubborn problem of overcapacity; on the other hand, the cement production line is still under construction, and the overcapacity is further aggravated. Moderate overcapacity marks the maturity of the industry and is also the natural law of market economy.

Promoting enterprise merger and reorganization is an important measure to promote industrial transformation and upgrading and accelerate the transformation of development mode, but overcapacity is still a "blocker" of transformation and upgrading ".

Taking cement as an example, after more than 10 years of development, the cement industry, which is the foundation of the country, has also developed from "high temperature in summer" to "severe cold in winter". On the one hand, the state frequently issues documents to control production capacity, but it seems that the policy fails and still cannot handle the stubborn problem of overcapacity; on the other hand, the cement production line is still under construction, and the overcapacity is further aggravated.

Moderate overcapacity marks the maturity of the industry and is also the natural law of the market economy. If there is excessive overcapacity in the industry, it means that there is a crisis in the development of the industry.

The Ministry of Industry and Information Technology recently issued the "Guiding Opinions on Accelerating the Merger and Reorganization of Enterprises in Key Industries", which requires that the industrial concentration of 10 enterprises in the cement industry reach 35% by 2015, forming 3-4 building materials enterprise groups with a production capacity of more than 0.1 billion tons and core competitiveness and international influence.

Sun Mingming, a cement industry analyst interviewed by the reporter, believes that the concentration of the cement industry has been increasing in recent years, and it is possible to achieve this goal in three years.

However, Chen Zhangli, a researcher in the building materials industry of CIC consultant, expressed concern. He told reporters that judging from the current production capacity, only China Building Materials and Conch Cement have a production capacity of more than 0.1 billion tons, and the clinker production capacity of other large enterprises such as Jidong Cement and Sinoma Group is far from the target of 100 million tons.

Chen Zhangli said that the industrial concentration of China's top 10 enterprises is less than 30%, and there is still a long way to go from the goal. From the feasibility point of view, some local governments conceal, transfer of production capacity and other bad practices will restrict the increase of industry concentration. In addition, as the economy picks up and the country accelerates the pace of urbanization, there are obvious signs of recovery in the cement industry, and some companies are less willing to choose to be acquired, so it is more difficult to achieve the above goals.

Since the reform and opening up, benefiting from the construction of national basic projects, the cement industry has developed by leaps and bounds, and its output has increased from 65.24 million tons in 1978 to 2.212 billion tons in 2012. According to data from the National Bureau of Statistics, cement production has ranked first in the world for many years in a row, of which production accounted for 60% of the world's total output in 2009.

Overcapacity in the cement industry has spread to East China and the whole country as early as 2004, and relevant state departments have also issued a number of documents to eliminate its backward production capacity. In the recent 19 industrial industries issued by the Ministry of Industry and Information Technology to eliminate backward production capacity target tasks, the cement (material and mill) to eliminate 73.45 million tons.

Sun Mingming said that the concentration of the cement industry continues to increase, which will reduce the cyclical fluctuations of cement, extend the business cycle of the industry and improve the profitability of cement.

After consulting the documents issued by the state for more than ten years to curb the overcapacity of cement, the reporter found that on the surface, the backward production capacity of cement has been continuously "optimized", but a strange phenomenon has emerged with the emergence of problems. Yes, the industry has fallen into a vicious circle of more and more excess.

The China Cement Association initially verified that 125 new production lines were added to the industry last year, with an additional production capacity of 0.16 billion tons, resulting in a further increase in production capacity.

"A basket of policies", whether it is the elimination of backward production capacity or merger and reorganization, why can't we solve the stubborn problems in the cement industry?

Chen Zhangli said: on the one hand, out of their own interests, some local governments protect backward production capacity by concealing and transferring production capacity, resulting in the implementation of the policy of eliminating backward production capacity falling short of expectations; on the one hand, with the popularization of advanced technologies such as new dry cellars, the production efficiency of enterprises has been greatly improved, but at the same time, the low entry threshold of the industry has led to a substantial increase in production line, eventually leading to a continuous increase in total production capacity.

It is worth mentioning that eliminating backward production capacity is one of the ways to solve the problem of overcapacity. No matter whether the problem of overcapacity in the cement industry has been alleviated or not, the problem of eliminating backward production capacity still has a long way to go. And industry overcapacity can not only simply compress its production capacity, but to optimize the industry structure adjustment and upgrading is the key.

There are about 3000 cement enterprises, large and small, in China. According to the 12th Five Year Plan for the development of cement industry, the number of cement enterprises will be reduced by 1/3 by the end of 2015.

Chen Zhangli said that under the dual promotion of policy and overcapacity formation, it is the general trend to strengthen industry mergers and acquisitions and increase industry concentration. On the one hand, some large enterprises will strengthen the research and development of new technologies such as the second-generation dry cellar; on the other hand, with the improvement of national transportation efficiency, the cross-regional scale advantage will become more and more significant, and the profit space of small and medium-sized cement enterprises will be squeezed, which will help to improve the entry threshold of the industry.