Production line "dismantling two in one" cement production capacity only increases!

The Interpretation of the Implementation Measures for Capacity Replacement in the Cement and Glass Industry issued in July

2021 clearly States that two production lines in the same factory area may not formulate a capacity replacement plan for the implementation of "dismantling two in one" technical transformation in the original factory area, in other words, they can be replaced equally.

Recently, a cement group withdrew from the city and entered the park, "dismantling two in one", dismantling a production line with a daily output of 2000 tons (actual daily output of 2500 tons), a production line with a daily output of 2500 tons (actual daily output of 2500 tons), and replacing the construction of a production line with a daily output of 4500 tons. The actual daily output of the

original two lines is 5000 tons, and the newly built daily output is 4500 tons. In terms of figures, the daily output has been reduced by 500 tons. However, the actual production capacity is usually 20% larger than design capacity, that is, 4500 tons per day, the actual daily production can reach 5400 tons, so the new 4500 tons per day actually increased by 400 tons compared with the original two production lines.

"Dismantling two in one", even if the same amount of replacement, also brings the consequences of increasing production capacity, while activating the production line of 2000 tons per day, if this line is not dismantled, it may soon be included in the elimination category.

To sum up, the policy of "dismantling two in one" in this region should be implemented.

Other points of understanding:

1. Staggered production, only reducing production, can alleviate the contradiction between supply and demand, but staggered production can not reduce production capacity.

2. Capacity replacement can reduce part of the capacity, but the speed of capacity reduction is far behind the speed of market demand decline.

3. It is almost useless to reduce production capacity by means of energy, emission and quality.

4. Administrative measures to reduce production capacity, the government costs, but the effect is immediate; market measures to reduce production capacity, the government spends less money, but the effect is slow.

5. Different provinces have different levels of economic development and cement overcapacity, so the competent government departments can only formulate macro-capacity reduction policies, not "one-size-fits-all" policies.

6. Only when the central government breaks down the target of capacity reduction into provinces, formulates specific rules by provinces, and completes the target tasks on schedule, can overcapacity be effectively resolved.