[Exclusive Interview] Liu Pengfei: The Cement Industry in Inner Mongolia Is Expecting to Get Out of the Low-lying Land in the Future

2021-03-05 15:40:50

"I firmly believe that although the road ahead may not be smooth, the prospects are bright and the future is promising." Liu Pengfei said so.

"From 2019 to 2020, the cement industry in Inner Mongolia has stopped falling and is worth summarizing and developing." When summarizing the development of cement industry in Inner Mongolia in recent years,

Liu Pengfei's words not only give us a glimpse of the performance of the cement industry in Inner Mongolia in the past two years, but also boost the confidence of the cement industry in Northwest China to a certain extent. The cement industry

in Inner Mongolia is looking forward to getting out of the low-lying land

. "2020 is extremely extraordinary, but under the epidemic situation, it is very difficult!"! The cement industry has also taken advantage of the general trend of China's economic development, turning crises into opportunities, striving hard and constantly evolving, creating good economic and social benefits.

2020 is also an extraordinary year for the cement industry in Inner Mongolia. As we all know in the industry, Inner Mongolia has serious overcapacity, the imbalance between supply and demand of cement, the complexity of PVC clinker problem, the narrow and vast area of Inner Mongolia, which is adjacent to Ningxia, Shanxi, Shaanxi, Hebei and Northeast China, and the cement market is interdependent and interacted with each other. Inner Mongolia has always been the https://price.ccement.

of the whole country. "I said in an interview with you a few years ago that things in the industry still need to be done by our own people in the industry!" Liu Pengfei disclosed that under the guidance of the competent government departments in Inner Mongolia to promote the coordinated development of traditional cement enterprises and PVC clinker enterprises, the communication between cement enterprises in the region and enterprises in neighboring provinces has become more smooth, the phenomenon of disorderly competition has been curbed to a certain extent, the staggered peak production has been relatively effectively implemented, and the production of PVC clinker has been promoted. From 2019 to 2020, the cement industry in Inner Mongolia stopped falling and improved, which is worth summarizing and developing.

Looking ahead to 2021, Liu Pengfei said that the market in 2021 is still promising , benefiting from the acceleration of projects lagging behind the epidemic and the start of some projects supporting economic development. However, with the constant change of capacity replacement and market competition, the performance of different regions is slightly different. Specifically in Inner Mongolia, there are not many new projects and the demand will be relatively stable, but the situation of overcapacity remains unchanged, so there are many uncertainties in the market. "As long as we continue to work hard, the market will still maintain a relatively balanced state, and the price will gradually return to the product value because of the industry consensus.". We look forward to working with you to get out of the low-lying land and achieve high-quality development. Liu Pengfei said.

Although the current cement industry has maintained a good momentum of development, based on the cyclical characteristics of the cement industry, some people have expressed concern about the future trend of the industry.

In this regard, Liu Pengfei believes that the development of the cement industry is closely related to the national economic development. With the construction of the domestic and international dual-cycle system and the promotion of "new infrastructure", the pace of urbanization and beautiful rural construction will be accelerated, and the national economy will maintain a stable growth, so the cement industry will also benefit. Local market demand will be strong, but the national production and sales will be difficult to reach the previous peak, and even there will be a slow decline. For this reason, the cement industry should adopt various ways to improve industrial concentration in order to cope with the future market decline. The key to the success or failure of the development of the cement industry in

Inner Mongolia lies in three aspects

. Although the development of the cement industry in Inner Mongolia has improved in the past two years, the current situation of serious overcapacity and the need to consolidate the foundation for development has not been thoroughly solved. How to break free from the low-lying land? The notice calls for promoting the normalization of the national cement peak staggering production area and time, and all cement clinker production lines should carry out peak staggering production. Inner Mongolia region has attracted more attention because of its particularity of peak shifting and replacement of carbide slag.

"The effect of peak staggering production is obvious to all, which has a positive, realistic and long-term effect and significance on carbon emissions, dust control, energy consumption and the development of cement industry." Liu Pengfei said that with the vigorous promotion of the Department of Industry and Information Technology and the Department of Environmental Protection of Inner Mongolia Autonomous Region, the peak-staggering production in Inner Mongolia in 2019-2020 has made great progress compared with the past, and the peak-staggering replacement of carbide slag is more orderly and is gradually being straightened out. This is the key for the cement industry in Inner Mongolia to extricate itself from difficulties, and is also the basis for stopping falling and improving.

this context, in December 2020, the Inner Mongolia Autonomous Region Development and Reform Commission, in conjunction with the Office of Industry and Information Technology and the Energy Bureau, drafted a number of safeguards to ensure the "14th Five-Year Plan" energy consumption double control target task. In March 2021, Inner Mongolia Autonomous Region issued "Several Safeguard Measures to Ensure the Completion of the" 14th Five-Year Plan "Energy Consumption Double Control Target Task (Draft for Opinions)", which proposed that from 2021, new capacity projects such as cement (clinker) will no longer be approved, and if it is really necessary to build, capacity and energy consumption reduction replacement must be implemented in the region.

Regarding the introduction of this measure, Liu Pengfei pointed out that it is an indisputable fact that the overcapacity rate of cement in Inner Mongolia is in the forefront of the country, and the "double control of energy consumption" measures introduced in this plan are fully in line with reality. It is of practical significance to curb the overcapacity of the cement industry in Inner Mongolia, to promote the comprehensive control of air pollution in Inner Mongolia, and to promote the healthy development of the cement industry in Inner Mongolia.

As early as August 2018, the Ministry of Industry and Information Technology and the Development and Reform Commission jointly issued a notice on serious capacity replacement and strict prohibition of new capacity in the cement flat glass industry. The notice requires that the filing of cement clinker and flat glass construction projects shall be strictly controlled at the source, and the construction projects with new cement clinker and flat glass production capacity shall not be filed in any other name or in any way; the relevant departments and institutions shall not handle land supply, energy assessment, environmental assessment approval and new credit support and other related businesses. For cement clinker and flat glass construction projects that are really necessary to be built, equivalent or reduced replacement must be carried out in strict accordance with the Measures for the Implementation of Capacity Replacement in the Cement and Flat Glass Industry (Ministry of Industry and Information Technology [2017] No.337), and the capacity replacement plan announced by the local provincial industrial and information authorities must be held.

Liu Pengfei's views on capacity replacement coincide with the above notice. Liu Pengfei suggested that the policy boundary should be well controlled in the process of implementing capacity replacement. Reduction and replacement is an effective way to resolve excess capacity, but effective capacity must be involved in the replacement, and we must resolutely prevent the resurgence of backward capacity that has been eliminated and zombie capacity that has been withdrawn from the market for a long time in the name of capacity replacement.

Third, to create a good market environment

, some insiders said that the current cement industry's ability to resist risks is significantly enhanced, and the concept of "industry interests are higher than enterprise interests" has gradually become the consensus of the industry, which is also the key factor contributing to the current good development trend of the industry.

"I agree with the view that the key to the success or failure of the development of the cement industry in Inner Mongolia depends on whether the concept of" industry interests are higher than enterprise interests "is implemented in place. Liu Pengfei pointed out that the key to maintaining a good situation in the industry is to actively create a good market environment. Disorderly competition and vicious competition will destroy the internal ecology and social ecology of the industry. "We must recognize that a dominant and winner-take-all is not a favorable choice for the industry, but a hundred flowers blossom and mutual benefit." He said.

"I firmly believe that although the road ahead may not be smooth, the prospects are bright and the future is promising." Liu Pengfei said so.

High-quality development is the only way for Mengxi Cement to determine its development path

. "High-quality is the main line of China's economic and social development, and also the only way for the cement industry." Liu Pengfei said in the interview that the cement industry has achieved high-quality development with the following signs: first, the utilization rate of production capacity has returned to a reasonable level; second, the operating efficiency of enterprises in the industry is stable and the income of employees has increased reasonably; third, the equipment level is moving towards automation and intellectualization, and the production efficiency has been significantly improved; fourth, it is in harmony with the environment.

As far as the cement industry in Inner Mongolia is concerned, the key to achieving high-quality development of the cement industry lies in the coordinated development between traditional clinker enterprises and carbide slag clinker enterprises, and whether the peak-staggering production policy can be strictly implemented synchronously between the two types of enterprises.

For Mengxi Cement, the path to achieve high-quality development is "stable speed, moderate scale, resource integration, and lasting power".Stable speed means that the pursuit of development must be stable, moderate and sustainable, not simply the pursuit of high speed, firmly adhere to the principle of steady progress in the course of operation; Moderate scale is to make the enterprise better, better, better and stronger, not simply to pursue bigger, because large scale does not mean high quality and strong competitiveness, we must pay more attention to the organic unity of enterprise management quality and efficiency; Resource integration is to rationally allocate all kinds of resources within the enterprise to maximize their effectiveness, and at the same time to fully absorb and utilize the advanced technological resources, management resources and human resources in the industry to promote the development of the enterprise; Lasting power means not to be entangled in the quality of temporary business performance, but to build up enough self-confidence, do our own thing well, unswervingly promote industrial transformation and upgrading, and inject new and lasting development power into enterprises. In addition, Mengxi Cement will further improve product quality, service quality and management quality, pay more attention to social benefits, and realize the coordinated development of industrial chain and supply chain. In Liu Pengfei's view, the

https://img7.ccement.com/richtext/img/78a02irgezt1614929743214. is mainly due to the following reasons:

First, the planning is in place. Second, fully tap its own potential, vigorously promote 7s management, and improve product performance and competitiveness; Thirdly, the Group has implemented the reform of management system, established regional east and west management committees, operated independently, delegated management authority, improved decision-making and work efficiency, greatly stimulated the vitality of the enterprise, and achieved very good results. Fourthly, the Group has focused on the development of both domestic and foreign markets, and exported high-quality products in an orderly manner; Fifth, the communication and cooperation between enterprises in the industry are smooth, and the market environment has improved.

New start, new journey. 2021 is the first year of the "14th Five-Year Plan". Standing at a new historical starting point, what kind of "14th Five-Year Plan" has Mengxi Cement made? To

consolidate the foundation, it is proposed to focus on the steady and sustainable operation of enterprises. In the next five years, Mengxi Cement will achieve stable market voice, stable efficiency and leading cost; Strengths and weaknesses are determined from the perspective of realizing the balanced development of enterprises. It is necessary to make up for the shortcomings of environmental protection in an all-round way, speed up the construction of green factories and green mines, strengthen the construction of innovation capacity, and realize the balanced development. Debt control is arranged with a view to realizing the goal of light loading of enterprises. In the "14th Five-Year Plan", bank loans should be reduced vigorously, the scale of accounts payable should be further reduced, and the pressure of enterprise operation should be alleviated; Improving quality is considered from the point of view of strengthening the body of the enterprise. We should strengthen the "health care consciousness", comprehensively improve the quality of operation, product and management, and strengthen the body and bones; Promoting development is deployed from the perspective of promoting the cause of Mengxi and building a long-lived enterprise. On the basis of improving the quality and efficiency of enterprise operation, efforts should be made to build a new industrial development pattern and actively cultivate and forge new momentum.

Around the above strategic principles, Mengxi Cement has put forward a series of development goals of improving quality, increasing efficiency, strengthening the body and strengthening the bones, and will unite and mobilize all Mengxi people to work unswervingly towards the established goals to promote the high-quality development of Mengxi Cement.

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"I firmly believe that although the road ahead may not be smooth, the prospects are bright and the future is promising." Liu Pengfei said so.

2021-03-05 15:40:50

On February 3, the Department of Industry and Information Technology of Gansu Province issued the Announcement on the Replacement Scheme of Yongdeng and Tianshui Cement Clinker Production Lines of Gansu Qilianshan Cement Group Co., Ltd.