Cement Economy 50 Forum | Ma Weiping: Cement Demand Drops by 1 Billion Tons in 10 Years, Foreign Mergers and Acquisitions Experience Should Be Used for Reference

2024-03-28 16:22:09

The whole industry should have a clear understanding that the demand for cement will certainly decline. Last year's demand is better than this year's, and this year's demand is better than next year's. Ten years later, the demand for cement is about 1/3 of the current level, about 1 billion tons.

On March 28, the "Cement Economy 50 People Forum" hosted by China Cement Network was successfully held in Hangzhou. The theme of the forum was: Understanding the Changing Situation, Solving the Difficult Situation and Seeking Development. Ma Weiping, former chairman and president

of Yaobai Special Cement Group Co., Ltd., put forward three views:

First, the whole industry should have a clear understanding that the demand for cement will certainly decline , last year's demand is better than this year's, this year's demand is better than next year's, and ten years later. Cement demand is about 1/3 of the current level, about 1 billion tons.

Second, on the supply side, production capacity has been increasing. Over the years, cement production capacity has been increasing, many backward production capacity has revived, most enterprises have expanded production capacity through technological transformation, and the imbalance between supply and demand of cement has become more and more serious. It also calls on the whole industry to prohibit new production capacity.

Third, what about the cement industry? One is paid withdrawal, but the specific operation is more difficult. The second is to learn from the experience of foreign countries. For example, the capacity utilization rate of more than 30 cement enterprises in Japan was only about 60%, but through the way of enterprise equity and merger, it eventually became five enterprises. In the context of declining demand, the capacity utilization rate reached 90%, and the industry profits were also increasing.

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Zhang Jian, general manager of marketing department of Red Lion Holding Group Co., Ltd., said that at present, it is an indisputable fact that the cement industry has excess capacity and declining demand.

2024-03-28 18:04:10

Guo Shiqing, marketing director of Huaxin Cement Co., Ltd., said that the situation in the cement industry is grim and needs to make higher response measures to change.

2024-03-28 17:10:42

Ten years later, it is estimated that the demand for cement will be 700-800 million tons, but if we can do the corresponding work well, the cement industry is still hopeful and can maintain a healthy development, otherwise, the situation of the cement industry will be very grim.

2024-03-28 17:01:11

The whole industry should have a clear understanding that the demand for cement will certainly decline. Last year's demand is better than this year's, and this year's demand is better than next year's. Ten years later, the demand for cement is about 1/3 of the current level, about 1 billion tons.

2024-03-28 16:22:09

At present, cement enterprises have felt the deep chill of the industry, and the prospect of the cement industry is not optimistic. In this industry situation, cement enterprises should go on firmly.

2024-03-28 16:20:57

Yu Jianhong calls for large enterprises to lead, industry associations to promote, and large and small enterprises to dock.

2024-03-28 16:04:26

Zhang Zonghui said that the current sharp decline in cement market demand has caused a serious impact on the ecological environment of the industry. Under the pressure of oversupply, in order to seize market share, some enterprises do not hesitate to adopt unfair competition means such as selling below cost price, which leads to a substantial reduction in the overall profit margin of the industry and serious damage to the normal market order.

2024-03-28 15:58:55

Li Xinyue said that at present, the clinker production capacity of the cement industry has been increasing, but the more the production capacity is reduced, at the same time, the market demand is falling off a cliff. In this context, we should unify, guarantee the bottom price, differentiate, reduce costs and seek survival.

2024-03-28 15:49:21

The number of cement enterprises in Tibet is relatively small, and the self-discipline effect of the industry in the region is good. Under the leadership of the association, the production was suspended for about 165 days last year, which also played a supporting role in the market.

2024-03-28 15:44:12

On August 11, Conch Cement announced that Li Qunfeng resigned as general manager of the company and continued to serve as executive director of the company and director of some subsidiaries of the company. At the same time, the Board unanimously agreed to appoint Mr. Yu Shui as the general manager of the Company.