On November 15, the "2024 China Cement High Quality Development Forum and OCC Second Anti-Involution Forum" was held in Tongcheng, Anhui Province. Wang Degui, General Manager of
China Railway Materials Anhui Tiepeng Cement Co., Ltd., on behalf of all members of OCC, issued the OCC Cement Industry Anti-Involution Tongcheng Declaration.
Declaration proposal:
1. Recognize the industry situation and strengthen confidence in development. We will comprehensively analyze the current economic environment and the development trend of the industry, maintain strategic strength, strengthen confidence in the development of the industry, and jointly respond to market challenges.
2. Adhere to "price, cost and profit" and maintain a balance between production and marketing. Establish a correct market concept, take reasonable price, cost and profit as the core, ensure the balance between production and sales, and avoid blindly expanding the scale of production, resulting in waste of resources.
3. Strictly produce on demand and optimize the supply structure. According to the change of market demand and the trend of future demand, we should flexibly adjust the production plan, implement precision production, reduce ineffective supply and increase the added value of products.
4. Speed up the elimination of backwardness and establish a mechanism for capacity clearance. Actively respond to national policies, speed up the elimination of backward production capacity, establish and improve the exit mechanism of production capacity, provide development space for advanced production capacity, and enhance the overall competitiveness of the industry.
5. Deepen cooperation and exchanges to achieve mutual benefit and win-win results. Strengthen intra-industry and cross-industry communication and cooperation, share information resources, explore new modes of cooperation, form a good pattern of coordinated development of upstream and downstream industrial chains, and jointly promote the transformation and upgrading of the industry. The full text of the
declaration is as follows:
OCC Cement Industry Anti-Involution Tongcheng Declaration
At present, the domestic economy is in the throes of the transformation of new and old kinetic energy, the demand for cement continues to decline under the influence of objective factors such as the deep adjustment of the real estate industry and the increasing pressure of local finance, and the mismatch between supply and demand in the market intensifies. Enterprises in the industry suffer serious losses, which is not conducive to the high-quality development of the industry.
On July 30, the Political Bureau of the Central Committee of the Communist Party of China held a meeting and proposed that "industry self-discipline should be strengthened to prevent vicious competition.". Strengthen the mechanism of survival of the fittest in the market and smooth the exit channels of backward and inefficient production capacity.
As an important basic industry supporting the development of national economy, the cement industry should actively implement the spirit of the central policy documents, maintain a scientific and rational attitude, and resolutely resist the "involution" vicious competition. By building a healthy and orderly competitive environment, we can achieve efficient allocation of resources and sustainable development of the industry. This is not only a positive response to the central policy, but also an inherent demand to promote the transformation and upgrading of the cement industry and to move towards high-quality development.
In order to improve the fragile situation of ecological construction in the cement industry, cope with various challenges and restore confidence in steady growth, the following proposals are put forward to the whole industry, aiming at promoting the healthy, orderly and sustainable development of the industry:
1. Recognize the situation of the industry and strengthen confidence in development. We will comprehensively analyze the current economic environment and the development trend of the industry, maintain strategic strength, strengthen confidence in the development of the industry, and jointly respond to market challenges.
2. Adhere to "price, cost and profit" and maintain a balance between production and marketing. Establish a correct market concept, take reasonable price, cost and profit as the core, ensure the balance between production and sales, and avoid blindly expanding the scale of production, resulting in waste of resources.
3. Strictly produce on demand and optimize the supply structure. According to the change of market demand and the trend of future demand, we should flexibly adjust the production plan, implement precision production, reduce ineffective supply and increase the added value of products.
4. Speed up the elimination of backwardness and establish a mechanism for capacity clearance. Actively respond to national policies, speed up the elimination of backward production capacity, establish and improve the exit mechanism of production capacity, provide development space for advanced production capacity, and enhance the overall competitiveness of the industry.
5. Deepen cooperation and exchanges to achieve mutual benefit and win-win results. Strengthen intra-industry and cross-industry communication and cooperation, share information resources, explore new modes of cooperation, form a good pattern of coordinated development of upstream and downstream industrial chains, and jointly promote the transformation and upgrading of the industry.
Let us work hand in hand to implement the above initiatives with practical actions and contribute wisdom and strength to the high-quality development of the cement industry.
All OCC Members
November 15
, 2024