Recently, Shangfeng Cement announced that Xinjiang Tianfeng Investment Co., Ltd., a wholly-owned subsidiary of Shangfeng Building Materials, intends to acquire 100% equity of Xinjiang Bohai Cement Co., Ltd. (Hereinafter referred to as "Bohai Cement"). After the acquisition, Bohai Cement will become a wholly-owned subsidiary of Xinjiang Tianfeng, and Shangfeng Building Materials will indirectly hold 30% of Bohai Cement through Xinjiang Tianfeng.
The announcement shows that Bohai Cement currently has a clinker cement production line with a daily output of 5500 tons, an annual cement production capacity of 1 million tons, 810 mu of land, 60 million tons of limestone reserves and 3.3 million tons of shale reserves. The equity acquisition
of Shangfeng Cement is in line with the company's strategic development plan, effectively integrating industry resources, which is conducive to consolidating the development of the main industry and continuously enhancing the company's comprehensive competitiveness in the northwest region.
According to the official website, Shangfeng Cement is one of the top 60 cement enterprises supported by the national industrial restructuring, focusing on the production, manufacture and sale of cement clinker, cement, special cement, concrete, aggregate and other building materials.
Shangfeng cement brand has more than 40 years of brand accumulation, and enjoys a high reputation and reputation in the market. The main types of cement include 42.5 grade cement, 52.5 grade cement and special cement for oil wells, which are widely used in infrastructure or large-scale heavy industrial facilities such as railways, highways, airports, water conservancy projects and oil wells, as well as urban real estate development and construction and rural markets.
In recent years, the main business of Shangfeng Cement has developed steadily. In the first half of 2023, Shangfeng Cement produced 7.39 million tons of clinker, with a year-on-year increase of 200,000 tons; produced 7.5 million tons of cement, with a year-on-year increase of 1.23 million tons; and sold 9.97 million tons of cement and clinker, with a year-on-year increase of 18.69%.
Careful observation shows that Shangfeng Cement continues to focus on its main business, and the company's overall market layout is also quite sophisticated.
It is understood that the manufacturing base of Shangfeng Cement in China is mainly located in the economic belt along the Yangtze River, which has a good market base and a large demand for products, stable and sufficient limestone resources, and superior and convenient logistics conditions along the Yangtze River and coastal areas, which has also become the core foundation for the stable development of the company's business.
On this basis, Shangfeng Cement has continuously expanded the northwest Xinjiang, Ningxia, Inner Mongolia and other regions, as well as the southern Guizhou, Guangxi and other regions, to promote the coordinated development of the three major regions of East China, Northwest China and Southwest China, and at the same time, it has mastered sufficient and excellent limestone resources reserves to accumulate momentum for the sustainable development of the new region.
The acquisition of Bohai Cement is another "wonderful chess" of Shangfeng Cement in the northwest region. At present, Bohai Cement has a new dry process clinker production line with a daily output of 5500 tons, an annual cement production capacity of 1 million tons, a limestone resource reserve of 60 million tons and a shale mine reserve of 3.3 million tons. In addition, the company has a cement grinding station with an annual output of 1 million tons in the Horgos Economic Development Zone.
It should be pointed out that the cement industry has a very strong "map effect". The economic radius of ordinary cement tanker transportation is 150-200 kilometers, the reasonable radius of railway transportation is 300-500 kilometers, and the waterway transportation is more than 600 kilometers.
Shangfeng Cement continues to increase the layout of the northwest inland, which is conducive to expanding the company's sales radius, improving profitability, and further enhancing the company's comprehensive competitiveness in the northwest region. The main business of Shangfeng Cement has been continuously consolidated, and its development foundation has become increasingly stable.
Responding to the strategy of "one belt and one road" and expanding overseas markets
in recent years, Shangfeng cement has actively participated in the construction of "one belt and one road" through acquisition and new projects. Including Kyrgyzstan and Uzbekistan.
In 2014, through detailed market research, Shangfeng Cement found that infrastructure construction in many parts of Central Asia in the "Silk Road Economic Belt" has great potential and market space, and the cement industry is pregnant with huge business opportunities.
With the acceleration of economic development in Kyrgyzstan, the demand for infrastructure construction is large, and the supply of cement building materials is in short supply. In addition, the local area is rich in resources, known as the "Central Asian Coal Bucket", with huge hydropower potential, and has the basic conditions for the construction of cement building materials products.
Grasping strategic opportunities and expanding new development space, Shangfeng Cement immediately established a joint venture with ZETH International Company to build a cement clinker production line with a daily output of 2800 tons and a supporting cement production line with an annual output of 1.2 million tons in Kyrgyzstan, with a total investment of about 700 million yuan.
In addition to the cement project in Kyrgyzstan, Shangfeng Cement also plans to invest 138 million US dollars to build a cement clinker production line with a daily output of 3200 tons and supporting cement production projects in Andijan, Republic of Uzbekistan. We will continue to expand the international route by taking advantage of our superior production capacity, seize the opportunity in the competition of resource allocation in the international market, and win new opportunities for development. On the basis of the steady development of the
main industry, Shangfeng Cement has gradually extended to the upstream and downstream of the industrial chain.
The first is the environmental protection business of co-disposal of hazardous solid wastes in cement kilns. Shangfeng Cement can provide disposal services of hazardous wastes, oily sludge and solid wastes for various industrial enterprises and oil fields, and can also provide comprehensive disposal services of "recycling, harmlessness and reduction" of various domestic wastes, sludge and other hazardous solid wastes for municipal administration.
According to the disclosure, a series of projects such as co-disposal of hazardous solid waste and hazardous waste landfill by cement kilns of two subsidiaries of Shangfeng Cement have been put into operation. In the first half of 2023, the company's cement kiln co-processing environmental protection business collected and transported about 198100 tons of hazardous waste sludge, municipal solid waste and general solid waste, with an actual disposal volume of 135700 tons and an operating income of 113 million yuan.
Secondly, the new energy business of optical storage, Shangfeng Cement actively responded to the "double carbon" strategy, promoted the adjustment of industrial structure, and carried out the construction, operation and maintenance business of new energy projects of optical storage. Use new energy technology to reduce energy consumption, promote the transformation and upgrading of the company's main business, and achieve sustainable high-quality development in the direction of low-carbon, energy-saving, intelligent and green. In the first half of 2023, the first batch of photovoltaic projects of the Company were successfully completed and put into operation, and a total of 2.04 million degrees of green power generation has been achieved, which is equivalent to saving about 670 tons of standard coal and reducing carbon dioxide emissions by about 2033 tons. The first user-side energy storage power station has been completed and put into trial operation, and the follow-up series of projects are also steadily advancing.
In addition, relying on the main business and market demand, Shangfeng Cement has further expanded its intelligent logistics business. By building a digital logistics platform, we can effectively guarantee the logistics efficiency of the main business, reduce operating costs, expand the market and supply channels, and gradually independently develop the external logistics market, and constantly consolidate the overall competitiveness of the company.
