The future of the "illegitimate" 5000t/d production line is somewhat unpredictable.

2024-03-14 11:01:59

From the time line, in the hottest years of the cement market, the production line was built in violation of regulations, and then failed to put into operation smoothly. With the increasingly severe cement market, it is even more difficult to realize the return on investment of this 5000t/d production line.

A 5000t/d production line that has repeatedly appeared in the government's list of violations has almost no news in the market. What is the secret behind this anonymous production line?

Recently, the Ministry of Ecology and Environment issued a circular on the inclusion of EIA credit management objects in the "blacklist" in the second half of 2023. It is mentioned that, Environmental Impact Report of 5000t/d Clinker New Dry Process Cement Production Line Project of Chaoyang Lanling Cement Co., Ltd. was prepared by Tang Limin (Credit No.: BH034582), the environmental assessment personnel of Minghe Environmental Protection Technology (Dalian) Co., Ltd. (Now renamed as Zhongheng Environmental Protection Technology (Dalian) Co., Ltd.), as the host and main preparation personnel There are serious quality problems in the Notice. The person was punished by prohibiting the preparation of environmental impact reports (forms) within five years according to law, and was given 20 points for dishonesty by the Liaoning Provincial Department of Ecology and Environment, and was blacklisted by the credit platform since September 19, 2023.

In accordance with the provisions of the Environmental Impact Assessment Law, the technical units entrusted with the preparation of environmental impact reports and environmental impact reports for construction projects violate the relevant national standards and technical specifications for environmental impact assessment, resulting in the preparation of environmental impact reports and environmental impact reports for construction projects. If there are serious quality problems such as major defects, omissions or falsehoods in the contents, incorrect or unreasonable conclusions of environmental impact assessment, the host and the main compilers shall be prohibited from preparing environmental impact reports and environmental impact report forms within five years. That is to say, the project has carried out environmental impact assessment, but there are serious quality problems in this environmental impact assessment.

Further back, as early as many years ago, the production line has been fined for violations. In 2018, the First Eco-environmental Protection Supervision Group of the Central Committee "looked back" on the list of public information on the transfer of mass letters and visits and the reform of border supervision mentioned that the production line of Chaoyang Lanling Cement Co., Ltd. with a daily output of 5000 tons of clinker had no environmental protection procedures, and had stopped construction according to the requirements of relevant departments, and had not been put into production. In June

2013, a fine of 100000 yuan was imposed on Chaoyang Lanling Cement Co., Ltd. for the illegal act of starting construction without approval of the production line project with a daily output of 5000 tons of clinker, and the construction was ordered to stop. On January 10, 2017, the relevant departments identified the production line project of Chaoyang Lanling Cement Co., Ltd. with a daily output of 5000 tons of cement clinker as an illegal project under construction.

Without environmental impact assessment, it is impossible to have environmental protection approval for projects. Therefore, the EIA probability of the project is later supplemented, and in the process of supplementation, there are serious quality problems in the EIA. As a construction unit, it is also difficult to get rid of this.

According to the published list of cement clinker production lines in Liaoning Province in 2021, Chaoyang Lanling Cement Co., Ltd. has only one 1000t/d production line (Note: "Lanling Cement" in the list of production lines should be "Lanling Cement"). This also shows that the production line has not been able to get a registered permanent residence, but also incognito.

From the actual understanding of the situation is that "the production line has been built for many years, but because of various reasons such as mines, it has not been formally put into operation." A person familiar with the matter told China Cement.

In March 2021, Shangfeng Cement announced that. Zhejiang Shangfeng Building Materials Co., Ltd., a wholly-owned subsidiary of the company, intends to sign the Cooperation Framework Agreement with Yu Jianping and Chaoyang Lanling Cement Co., Ltd., Chaoyang Lanze New Building Materials Co., Ltd. and Liaoning Yaluo Cement Co., Ltd. Lanling Cement, Lanze Building Materials and Yaluo Cement will inject cooperative assets into the newly established company through a series of asset restructuring. In the future, Shangfeng Building Materials intends to control 51% of the equity of the newly established company through acquisition or capital increase.

The parties confirm that the scope of the cement project assets to be included in the cooperation by the reorganizing party includes but is not limited to: a cement clinker production line with a daily output of 1,000 tons, a cement clinker production line with a daily output of 5,000 tons and supporting projects of Lanling Cement, related land and factory buildings and other assets ; The project of Lanze Building Materials with an annual output of 600,000 tons of slag powder and related assets; a cement clinker production line under construction with a daily output of 5,000 tons of Yaluo Cement and supporting limestone mining rights, land and other assets.

It can be confirmed that Lanling Cement has a cement clinker production line with a daily output of 5000 tons, supporting projects, related land and factory buildings and other assets.

Based on the above information, it can be seen that although the construction process of the 5000 t/d production line is stumbling, it has been completed, but it has not been registered, and it has not been formally put into operation due to various reasons.

From the time line, in the hottest years of the cement market, the production line was built in violation of regulations, and then failed to put into operation smoothly. With the increasingly severe cement market, it is even more difficult to realize the return on investment of this 5000t/d production line.

In this way, the future of this "illegitimate" 5000t/d production line may be a bit unpredictable!

Cement industry has serious overcapacity, the impact of peak staggering production on the supply side has declined significantly, the "competition and cooperation relationship" formed over the years has broken down, and the pressure of industry operation has doubled. On March 28-29, China Cement Network will hold the " 13th China Cement Industry Summit and TOP100 Award Ceremony " in Hangzhou, during which awards will be given to top 100 cement and supplier enterprises, and experts and scholars will be invited. China Railway and other construction units jointly discuss the new development trend of the cement industry in the future, and work together to create the future!

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Adani is also a big man in the Indian cement industry and is the second largest cement producer in India. He entered the industry in 2022 with the acquisition of Holcim's cement business in India, which acquired about 70 million tons of cement per year for $10.5 billion. Adani plans to expand its annual cement production capacity to 140 million tons by 2028. Adani has previously invested $1.6 billion to acquire Sanchi Cement and Penna Cement, and is expected to acquire an additional 21 million tons of production capacity.