2013, General Secretary Xi Jinping put forward the idea of building the "New Silk Road Economic Belt" and the "21st Century Maritime Silk Road". The innovation of "the Belt and Road" initiative has brought opportunities for China's cement industry to find new economic growth points and expand new regions. In the past
ten years, with the help of policy and accumulated advanced technology, capital strength and operation and management experience, many domestic cement enterprises have accelerated their overseas distribution, and many cement clinker projects have taken root and blossomed along the "the Belt and Road". Ten years before
seizing the new opportunity of "the Belt and Road" cement to gallop the international blue sea
, large enterprises in the cement industry began to aim at overseas markets, but the pace of cement enterprises going out was generally slow, and the distribution of overseas clinker production capacity was l ess, at that time, the main task was to go out with complete sets of cement technology and equipment. It has entered the international market in the mode of EPC project general contracting.
Moreover, the urbanization of the countries and regions along the "the Belt and Road" is in the initial stage, and it is urgent to develop the basic building materials industry. The proposal of "the Belt and Road" has undoubtedly brought opportunities for the overseas development of China's cement industry. After the "the Belt and Road" initiative was put forward
in 2013, China's cement enterprises began to accelerate the pace of going out, and the form of going out changed from simple technology and equipment export to capital export, that is, overseas investment in building factories and M & a expansion. According to the big data of China Cement Network, as of August 2023, 61 cement clinker production lines have been put into operation overseas by Chinese-funded enterprises, with a total clinker production capacity of 57.556 million tons, covering more than 20 countries, mainly along the "the Belt and Road". Expansion of
overseas production capacity
of Chinese-funded enterprises Data source: China Cement Net Cement Big Data
"At present, Conch Cement and Huaxin Cement rank the top two in terms of production capacity among the successful overseas production projects of Chinese-funded enterprises ." Li Kunming, Cement Big Data Research Institute, said.
From the coast of Southeast Asia to the hinterland of Central Asia, Conch Cement, as the pioneer of "going out" in the domestic cement industry, has invested more than 16 billion yuan in the countries along the "the Belt and Road" in the past ten years, and has built 16 physical projects in Indonesia, Myanmar, Laos, Kampuchea and Uzbekistan, with a clinker production capacity of 14 million tons. Cement production capacity is 23.5 million tons.
It is reported that Huaxin Cement also formally identified "overseas development" as an important part of the company's four development strategies after the General Secretary of Xi Jinping put forward the initiative of building a "the Belt and Road" in 2013. It was also in this year that the first stop of Huaxin Cement's "going out" was opened in the Republic of Tajikistan in Central Asia. Taking advantage of the "the Belt and Road", Huaxin
Nepal
has built or operated nearly 20 large-scale cement plants and related industrial chain enterprises in 11 countries along the "the Belt and Road" in Central Asia, Southeast Asia, South Asia, West Asia and Africa in the past 10 years, with a total cement production capacity of 20 million tons. Its annual revenue exceeds 4 billion yuan.
Of course, in addition to Conch Cement and Huaxin Cement, Red Lion Cement, China Building Materials and Gezhouba Cement are also deeply cultivated in the countries and regions along the Belt and Road.
As the basic raw material of the national economy, the cement industry is indispensable in infrastructure construction. However, some countries along the "the Belt and Road" have a relatively low level of economic development, and infrastructure construction and industrialization will be the focus of their development in the future. Chinese cement enterprises vigorously promote the international development strategy and deeply integrate into the local area with capital, technology and team, which not only promotes the upgrading of local industries, but also promotes the interconnection of local infrastructure and economic and social development. Yang Jun, chairman
of Conch Cement, once said that all the production lines of Conch's overseas projects adopt the most advanced technology and equipment facilities in China, importing advanced equipment manufacturing, technology and management technology for the countries where they invest, and at the same time providing a large number of jobs for the local people, promoting the development of related industries and the training of localized talents.
Data show that in March 2016, Huaxin adopted the world's leading new dry cement clinker production line technology and equipment to build the second million-ton production line in Tajikistan. At the ceremony, President Rahmon of Tajikistan delivered an ebullient speech and wrote an inscription in his own handwriting, praising "Huaxin Cement's high-standard construction of its own power generation system plant is the first in Central Asia". It is reported that the project is the first cement plant in the world with a self-contained power station operating in an isolated network, setting a model for investment and construction projects in countries with energy shortages.
At the same time, the entry of Chinese cement enterprises has also solved the local employment problem, integrating the cement enterprise culture with the local culture, helping to increase local employment and improve people's livelihood. In addition, the establishment of charitable funds, the construction of schools, the improvement of surrounding roads and facilities, domestic cement enterprises are also demonstrating their responsibilities and responsibilities.
Take Huaxin Cement as an example: as of the first half of 2023, Huaxin has invested a total of 130 million yuan in charitable funds in the countries related to the Belt and Road Initiative, and each overseas company has also set up a volunteer organization to use the strength of factory employees and equipment resources to help the surrounding residents and solve their difficulties, benefiting hundreds of thousands of local people.
For the future, Li Kunming, China Cement Network Cement Data Research Institute, said that in the long run, the urbanization rate, infrastructure and economic development level of the countries and regions along the "the Belt and Road" have great room for improvement, and the market demand potential is still relatively large. Under the support of the "the Belt and Road" initiative, Chinese enterprises are still facing great opportunities to go out. Conch Cement, Huaxin Cement and other large enterprises have indicated that they will continue to expand the international market and expand the global visibility and influence of Chinese cement enterprises.