Shao Jun, Chairman of China Cement Network, and His Delegation Visited Jianfeng Group

2024-07-31 11:13:42

During the exchange, the two sides agreed that it is difficult to achieve the goal of capacity reduction only by off-peak production. If the industry wants to get out of the current predicament, it still needs large enterprises to take active action and take the initiative to assume responsibility.

On July 30, Chairman Shao Jun of China Cement Network and his delegation visited Zhejiang Jianfeng Group Co., Ltd. and were warmly received by Jiang Xiaomeng, Party Secretary and Chairman of Jianfeng Group, and Yu Jianhong, General Manager of Jianfeng Group. The two sides had in-depth exchanges on the development trend of the cement industry.

According to Jiang Xiaomeng, Jianfeng Group started with cement. In the course of more than 60 years of development, it has continuously upgraded its connotation and expanded its extension, and has successively set foot in many industries, eventually forming a business pattern of "two-wheel drive, two-wing development and complementary advantages", with cement and medicine as the main part, health products, trade and logistics as the supplement.

Jiang Xiaomeng said in the exchange that the essence of capital is profit-seeking, and moderate competition can promote technological progress, but for any industry, to achieve long-term steady development, it will eventually tend to the mode of competition and cooperation.

Now the situation of cement industry is grim, which enterprises can "survive"? First, enterprises with reasonable layout, strong resource control and low cost; second, enterprises with high level of environmental protection; third, enterprises with non-cement business to support development.

Jiang Xiaomeng pointed out that the current cement industry is facing a serious problem of overcapacity, and capacity removal has become a top priority. However, in the process of promoting capacity removal, factors such as per capita capacity and market layout in the region need to be considered comprehensively. Any enterprise is the product of the development of the times, so we should adhere to the principle of "industry interests are higher than enterprise interests" and work together to promote the healthy development of the whole industry. During the exchange,

Yu Jianhong shared several ways to reduce overcapacity: first, eliminate enterprises that do not meet environmental protection standards through policy means; second, achieve "survival of the fittest" by means of market competition mechanism; third, give full play to the leading role of large enterprises, actively promote integration and reorganization, and constantly improve industry concentration.

During the exchange, the two sides agreed that it is difficult to achieve the goal of capacity reduction only by off-peak production. If the industry wants to get out of the current predicament, it still needs large enterprises to take active action and take the initiative to assume responsibility.

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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.