Sinoma International and Tianjin Institute went to Russia to discuss Yizhou cement project

From June 27 to 29, at the invitation of the government of Irkutsk, Russia, The Northeast Revitalization Department of the National Development and Reform Commission organized Sinoma International Group and Tianjin Cement Industry Design and Research Institute Co., Ltd. to carry out technical exchanges and project cooperation negotiations in the cement industry in Russia, and to coordinate and promote the implementation of the Yizhou Cement Cooperation Project in the Outline of the Sino-Russian Regional Cooperation Plan.

I. Current Situation of Cement Industry in Illinois

Illinois is relatively backward in the field of cement production, and the production is in short supply. There is only one cement enterprise built in the 1950s with an annual output of 1 million tons of wet kilns in the 730000 square kilometers of the prefecture. Due to the backward production technology and equipment, the cost remains high and the sales market is shrinking. The enterprise produced 1 million tons of cement in 2008 and 500,000 tons in 2009, while the market demand in the same period was 2.5 million tons and 1 million tons, and the market gap was supplemented by the surrounding areas and imports from China. At present, the price of cement per ton is more than 4800 rubles (about 1200 yuan). According to the 2020 economic and social development plan, Illinois will combine its own advantages to focus on the development of mining, tourism and industry, and with the recovery and development of the Russian economy, the future demand for cement in Illinois and its surrounding areas will continue to increase. It has become the consensus of the local government and enterprises to carry out technological transformation of backward cement enterprises or build new dry process cement production lines to balance the gap between supply and demand in the region. When the Yizhou delegation held a promotion meeting in Beijing in April this year, Vice Governor Pashkov expressed great interest in China's cement industry, and there was also a Yizhou cement production line project in the Outline of Planning.

II. Negotiation of Cooperation Projects

The Illinois government attached great importance to the Chinese side's visit and organized relevant departments of the state government, cement production enterprises and local investors to hold an investment cooperation and exchange meeting with Chinese enterprises. Yalov, Deputy Minister of Economic Development of Illinois, introduced the natural resources and economic and social development, as well as the medium- and long-term development plan. Wang Huajiang, deputy director of the Northeast Revitalization Department, introduced the progress of Sino-Russian regional cooperation, the overall situation of China's cement industry, and the development of technical equipment. The two sides expressed their support for the investment and cooperation of enterprises in the field of cement. Angarsk Cement Co., Ltd., Iran Mining Co., Ltd., Shuren Group and other Russian enterprises introduced their investment projects respectively; Sinoma International Group and Tianjin Cement Industry Design and Research Institute Co., Ltd. introduced their current situation, cooperation mode, investment and financing capacity, technological progress and innovation capacity of China's cement industry, and the enterprises of both sides exchanged their cement industry technology and equipment. Chinese enterprises inspected the project sites of Russian enterprises one by one to deepen their understanding of the actual situation. During the visit, the delegation also visited the Chinese Consulate General in Iraq, the Iraqi State Government and the Development Bureau, and exchanged preliminary views on regional project cooperation in the field of cement.

III. Possibility of Future Cooperation

The situation of the three Russian enterprises interested in cooperation is not the same. Yizhou-Angarsk Cement Co., Ltd. is a joint-stock company, which now has resource supply channels, systematic enterprise production management system, industrial workforce and product sales network. The main problems of the company are backward technology, obsolete equipment, high production costs and shrinking market sales. It is urgent to carry out modernization or rebuild the factory. Yi Mining Co., Ltd. and Shuren Group own mines or land and hope to invest and cooperate with Chinese enterprises to build new cement plants. These three enterprises are very interested in the advanced production technology and investment and financing capabilities of Chinese enterprises, and have shown strong willingness to cooperate.

Through this negotiation and investigation, Sinoma International Group and Tianjin Cement Industry Design & Research Institute Co., Ltd. feel that the cement market in Yizhou and even the whole Russia has broad prospects, great development potential and profit space. The next step will be to conduct in-depth research on Angarsk Cement Co., Ltd., Iraq Mining Co., Ltd. and Shuren Group in combination with the research and analysis of the cement market in and around Yizhou, and to conduct negotiation and docking again to determine partners. Our company will follow up the progress of the cooperation project in a timely manner, and strengthen coordination and provide support from the government level.

In the Outline of China-Russia Regional Cooperation Plan, Russia has proposed to build several cement production lines. Cement is an indispensable and important building material for the future development of the eastern region of Russia. At present, the sales price in Russia is 3 to 4 times that in China, and the market demand potential is huge. However, China's cement industry has obvious advantages in terms of technical equipment level, investment capacity of existing enterprises, and the support of the national "going out" strategy and financial policy. After consultation with the Department of International Relations and Border Cooperation Development of the Russian Ministry of Regional Development, the two sides will take the lead in holding the Sino-Russian Cement Industry Technology Exchange and Investment Cooperation Fair from July to August, aiming at expanding exchanges and promoting in-depth cooperation.

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