Famous experts and experts gathered to express their views from different perspectives. China Cement Network recently opened the column of "Talking about Cement Cold and Warm", interviewing many enterprise leaders and industry experts in the cement industry. This issue invites Chen Wensheng, Secretary of the Party Committee, Chairman and General Manager of Jiangxi Building Materials Group and Chairman of Jiangxi Wannianqing.
At present, the demand of cement industry is declining obviously, the contradiction between supply and demand is intensifying day by day, the national "price war" is full of smoke, the volume and price of cement are falling, and the industry has encountered unprecedented development difficulties. In this context, the performance of Jiangxi Evergreen in Jiangxi market is still relatively strong this year, with overall sales falling by about 4%.
Chen Wensheng pointed out that one of the main reasons for the current predicament of the cement industry is the serious overcapacity. In the past few years, the cement market has been booming, and the cement industry has made money, but the production capacity has not been removed. The rapid technological progress and high level of the industry, as well as a lot of capital entering the market, have led to a sharp increase in cement production capacity; while the capacity replacement policy has also brought a lot of "zombie capacity", and "building large with small ones" is common, which undoubtedly aggravates the problem of overcapacity in the cement industry. Since
this year, some large enterprises have practiced the strategy of "share is the foundation, profit is the purpose", and their achievements in market share are indeed obvious to all, but how to make profits and whether they really make profits may still be a problem.
Chen Wensheng said that at present, enterprises in the industry should realize one thing, that is, the healthy development of the industry should maintain reasonable profits. For any enterprise, especially state-owned enterprises, the result of operation is the most important.
Now it is obvious that cement enterprises must not only "engage in cement", transformation and upgrading is a "compulsory course" , the transformation experience of foreign cement industry may be a reference for domestic. However, enterprises should not blindly follow the trend, but need to consider their own existing industries, carefully examine the market of all walks of life, and carefully enter the market.