Lei Qianzhi: China Cement Industry To Enter The Capital Era Of Competition – Cement, Competition,

Editor’s Message: Cement Often referred to as the national economy, “thermometer”, “barometer” of people can change from the cement market in government investment and infrastructure to touch the “temperature.” In 2009, in response to international Financial Crisis in the process of writing the history of China’s cement industry, the most brilliant chapter, annual production reached a record 16.5 million tons, not only guaranteed 4 trillion yuan government construction projects to stimulate the economy needs, but also a large cement structure optimization amplitude to phase out backward production capacity, and hit a record high annual profits the industry. Meanwhile, the cement industry has also beats the capital markets, Small and medium enterprises. In 2009, people from East and West in the capital can see predators at home and abroad with large amounts of capital in China, mergers and acquisitions in the cement industry to show their talents. China’s “hundred million ton cement Club” ready to come out.

Cement is Building Materials Industry most concerned about the industry. 2010, Chinese cement how energy saving, emission reduction, utilizing waste, low carbon and so claim the credit, how to further economic recovery in China, the establishment of new exploits, how to promote industrialization and urbanization in the first and the basis to assume mission, how to promote structural optimization and construction of large enterprise groups have a new breakthrough in how the capital markets again in the new “dark horse”, which are the focus of attention outside the industry problems.

2009 in early to explore the use of cement kilns and a variety of waste sludge disposal coordination, China Cement Association, Ray visited Japan before the rule Shuaidui; in May by the National Development and Reform Commission has hired as head of research group went to a city in East China to conduct research on the problem of excess cement; in the second half to tie the Ministry of Industry and amend “the policy of Cement Industry”, hosted numerous seminars, explore the cement industry and sustainable development. In order to accurately grasp the cement industry, comprehensive information, newspaper writer and freelance writer had an interview before the China Cement Association, Lei rule. Lei Qianzhi focus on the cement industry in 2009, tracks were interpreted and analyzed the cement market in 2010 was forecast and assessment of the prospects, the depth of their expertise, authority perspective, forward-looking eyes is evident. Choose the following points to share with readers.

The author’s notes: the end of 2009, the World Climate Conference in Copenhagen, the Chinese cement industry in 2006 and 2008 a total of 140 million tons out of backward cement production capacity was as a symbol of China’s energy saving one of the events; 2009 years, the cement has been included in the inhibition of state departments of key industry overcapacity.

In the new century, China the most difficult year lopsided when the cement industry has once again become the object of government and market focus.

2009, the 4 trillion yuan in government initiatives to stimulate economic growth driven, the cement industry to become one of the first rebound. 2009 China’s cement market performance would change people’s early forecast of cement industry development, particularly in cement demand exceeds all expectations. In this regard, China Cement Association, Ray said the former rule with the “four did not expect.”

First did not think that the market demand for cement in 2009 so good. Preliminary results show that, in 2009, nearly 1.65 billion tons of cement production, up 250 million tons. This increment is not only in China, is the history of cement in the world is unprecedented. What is the concept of 250 million tons is equivalent to world’s second and third annual output of cement in India and the United States combined.

Second did not think that such a large scale of investment in cement. In 2009, cement investment reached 170 billion yuan, the equivalent of “15” of cement during total investment, close to the “Eleventh Five-Year” 3 years before the total investment in the cement.

Third did not think that the cement industry’s annual profits could meet again. Preliminary statistics show that in 2009 a total profit of China’s cement industry is expected to over 40 billion yuan, the Chinese economy in the new century’s most difficult years, the cement industry can achieve this efficiency can be quite difficult.

Fourth did not expect that the effect of the cement industry to enhance such merger integration significantly. In 2009, after the Spring Festival, China’s building materials cement together the North Hony Capital formation, as a “seed”, set in the North to promote the restructuring of small cement joint; in July, the acquisition of Jiangxi Huachang Red Lion, Golden Corner Holding Tianjin revitalization; September, Yatai buy gold circle; in November, while the acquisition of China Resources Hainan Branch of China Construction Bank and China investment products Management Company shares held by SDIC Hainan become the holding company of SDIC Hainan; entered in December, re-climax after the acquisition, in early spring Bay Resources by auction to buy cement in the construction project, then, Taiwan Cement to 3.8 billion acquisition of huge sums Prosperity Minerals, followed by acquisition of Qinling Jidong, China National Materials Holding Qilian Mountains. From the first to the end of every, East and West, almost can see a huge amount of capital to stimulate a large group of Chinese cement production.

2009, the re-united Zhangu Lei move, with remarkable results. According to the South of cement reported in the first half of the distribution of nearly 70 cement plants in Zhejiang location by region integration, set up four branches, the implementation of production, supply, integration of human, financial management, the technical and economic indicators backward or product Sell Blocked limiting the production line or stop, just a few months, the cost of procurement of coal fell by 5%, 5% savings total liquidity, tons of cement a profit of 15 yuan higher than before the integration over 1 year in advance to achieve the expected 3-year initial success, the development trend is very gratifying. According to the report of Yatai, Changchun Yatai and gold circle belong to the same market, competition caused by who would take the risk of poor sales price increases brought about a long time, prices are low, firms break even line high-wire act. Buy gold round Yatai heavily after the rapid increase in sales price per ton of cement by 20 yuan to 40 yuan, business began to have a reasonable profit. Consolidation and reorganization receive immediate results.