In the performance report of 2023, the overseas business of Conch Cement showed a strong growth momentum. The report shows that the total sales volume of cement clinker of overseas projects increased by 14% year-on-year; the average gross profit per ton of cement clinker of overseas projects increased by 16% year-on-year; and the operating profit of overseas projects increased by 100% year-on-year.
Coincidentally, Western Cement also benefited from the overseas market and achieved growth in 2023. The report shows that although China's domestic revenue decreased by about 1 billion yuan, its overseas business created 2.77 billion yuan in revenue. Among them, the revenue of the African market increased from 1.13 billion yuan in 2022 to 27.
From this point of view, the overseas market has become an important way for domestic cement enterprises to avoid market risks and improve their operating level.
In recent years, a large number of domestic cement enterprises have actively promoted the layout and expansion of overseas markets with the help of the "one belt and one road" initiative and the accumulated advanced technology, capital strength and operation and management experience.
According to the 2023 list of overseas investment and production released by China Cement Network, by the end of 2023, the overseas investment assets of domestic cement enterprises can continue to grow. Conch Cement, < a href = "https://price.ccement.com/brandnewslist-1-1000035.".
2023, Huaxin Cement acquired a 59.58% equity interest in a cement manufacturer located in Oman, a Middle East country, with a transaction consideration of about 1.
In August, the Tashkent Conch Cement Project invested by Anhui Conch Group in Uzbekistan was put into operation, with a daily output of 6,300 tons of clinker cement production line. In August of
the same year, Hongshi Group Indonesia Dongjia Hongshi Cement Co., Ltd. Phase I clinker cement production line with a daily output of 10000 tons was successfully ignited and put into operation. In February
2022, the commencement ceremony of the 6000t/d clinker cement production line of China West Cement Group Co., Ltd. was held in Andijan, Uzbekistan. In September
2021, China Nengjian signed a contract for Uzbekistan Hengyuan Cement Project, and Gezhouba Haitou Company and Gezhouba Cement Company jointly acquired 95% of the equity of Uzbekistan Hengyuan Cement (Joint Venture) Co., Ltd. to complete the investment in the construction of a cement production line with a daily output of 7500 tons of clinker cement and an annual output of 2.72 million tons of cement.
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According to the big data of China Cement Network, as of March 2024, as many as 62 cement clinker production lines have been put into operation overseas by Chinese-funded enterprises, and the cumulative clinker production capacity is as high as 6465.
At the same time, under the support of the "one belt and one way" strategy, Chinese cement enterprises have many opportunities to sail to sea, but all kinds of risks and challenges can not be ignored. A series of challenges, such as global overcapacity, scarcity of high-quality investment projects, insufficient international talent reserve, increasing financial pressure, geopolitical factors, exchange rate fluctuation risk and weak global economic recovery, still need to be faced by enterprises.
Generally speaking, the inflection point of domestic cement demand has emerged, and the degree of overcapacity has been aggravated. Cement enterprises are actively seeking overseas markets to seek new development opportunities. Although there is still a large market demand in the "one belt and one way" country, they should also be alert to the hidden risks and challenges. Cement enterprises should learn to recognize gold. More importantly, we should guard against dangerous reefs at the bottom of the sea.
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.
