"Self-rescue" Method of Cement Enterprise

this year, weak demand, high inventory and capital shortage became common phenomena in the cement industry, and the "haze" shrouded the whole industry for a long time. Faced with the "cold winter" market situation, some enterprises can not hold up and withdraw from the historical stage of cement, while some cement enterprises have opened the "self-help" mode. When the

cement market demand is low, in order to maintain the market share and ensure the normal operation of enterprises, price reduction sales has become one of the commonly used "self-help" methods.

According to the National Cement Price Index (CEMPI), as of the end of June, the index closed at 117.61 points, down 1.28% month-on-month and 19% year-on-year. Since April this year, the index has continued to decline, falling all the way to a new five-year low.

China Cement Network Cement Big Data Research Institute, also lamented that with the decline of real estate investment and the number of new projects, the impact on cement demand was expected, but the extent of the impact was unexpected.

Selling inefficient assets alleviates the pressure

of enterprises. Cement enterprises are facing the pressure of imbalance between supply and demand and declining market demand, which leads to increasing pressure on enterprises and severe operating conditions. In this case, many cement enterprises choose to "abandon" inefficient assets to ease the pressure. Cement enterprises gradually eliminate inefficient assets by eliminating old equipment and production lines that fail to meet the standards.

For example, Zhejiang Southern Cement transfers 100% equity of Cixi Southern Cement and the transferor transfers the creditor's rights of RMB 20.4388 million to the target company, and the transfer base price is RMB 55.5651 million;

Jidong Cement Tongchuan Co., Ltd. sold machinery and equipment for production lines of No.7 and No.8 kilns, with a transfer base price of nearly 95 million yuan.

Tangshan Yandong Cement auctions 1.8 million tons of grinding capacity index and 1.24 million tons of clinker capacity index, starting price 1.

Accelerating technological transformation to improve the competitiveness

of enterprises in recent years. Cement enterprises have begun to accelerate technological transformation, adopt new technologies and equipment, improve production efficiency, reduce energy consumption, and thus enhance their competitiveness. E.g. Qingzhou " It is understood that," The project upgrades the original 2500t/d new dry process clinker production line to 4600t/d new dry process clinker production line, supporting 9MW pure low-temperature waste heat power generation unit. The project started last year and has now entered the construction stage of the core main equipment.

Nowadays, the economic benefits of multimodal transport such as "transit water" and "transit railway" in the transportation of cement products have become increasingly prominent, and the sales scope of cement has been effectively improved. More and more cement enterprises have begun to transport across provinces, and have stepped up the construction of wharfs and ports. Improve the allocation of logistics resources and enhance the comprehensive ability of logistics operation. Cement enterprises gradually break the shackles of distance and constantly open up distant markets.

For example, last year, 10000 tons of Fujian cement from thousands of miles away came to Huzhou and Hangzhou markets by railway to "support the construction of projects in Huzhou and Xiaoshan, Zhejiang Province". The pouring of the bearing beam of the fourth structural section

of Laibin Wuxuan Huarun Cement Terminal Project has been completed. The total investment of the project is about 1.

But at the same time, some insiders pointed out that while cement enterprises open up the sales territory through multimodal transport, they also break the barriers to the cement regional market and intensify the competition in the cement market. It will have a certain impact on the regional pattern of the traditional market.

Merger and reorganization to optimize industrial structure

In the past two years, some cement enterprises have chosen to strengthen business integration within the industry, optimize their own asset structure and enhance their competitiveness through asset mergers.

According to the incomplete statistics of China Cement Network Cement Big Data Research Institute, there have been about 30 cases of mergers and acquisitions in the cement industry since 2022, the number of which has increased significantly compared with previous years, especially since October last year, when cement enterprises have frequent activities of buying and selling assets, including 22 mergers and acquisitions projects of cement clinker enterprises, 6 grinding stations and 2 others. Most of them are cases of industrial restructuring and layout, and the participating enterprises are mainly small and medium-sized enterprises.

Figure: The number of mergers and acquisitions has increased

significantly since 2022 Source: Cement Big Data (http://data.ccement. In recent years, cement enterprises have actively laid out industries such as aggregate, commercial mixing, new materials and new energy, bidding farewell to a single industry and opening up upstream and downstream industrial chains. Set foot in other fields and build an ecological industry chain with cement as the main part. After acquiring 100% equity of Conch New Energy in August

2021, Conch Cement began to develop new energy business frequently. For example, 5 billion yuan will be invested in the development of new energy businesses such as photovoltaic power plants and energy storage projects to achieve full coverage of photovoltaic power generation in subordinate factories. Li Qunfeng, executive director and general manager of Conch Cement, has made it clear that new energy is an important track for the company's transformation and development.

Tianshan shares said that it would actively develop the "cement plus" business. The commercial mixing business continued to optimize the layout, the aggregate business developed rapidly, the resource reserve was increased, and the collaborative disposal of solid waste, hazardous waste, domestic waste and other businesses were accelerated. In the construction of new energy sources such as photovoltaic power generation and wind power generation, we should adhere to the principle of building as much as possible.

Hongshi Group has determined its future development strategy: based on the main cement industry, enter the polysilicon industry, strengthen and refine the main cement industry, accelerate the layout of the polysilicon industry to form a scale, create the "second growth curve", and build a "cement + polysilicon" dual main industry pattern.

In addition, in response to the current market changes, some cement enterprises are also actively building clinker depots, transit depots and so on.

Faced with the current downturn in the industry situation and complex market environment, cement enterprises need to change their business ideas, accelerate the promotion and application of new technologies and new products, enhance the core competitiveness of enterprises, and seek diversified growth paths, tap new growth points, in order to better cope with the market environment and achieve sustainable development.

, China Cement Network will be held in Chongqing " and will visit the https://price.ccement. of Oriental Hope < a href = ".com/pricenewslist-1-500000-0.