Should the cement industry cancel capacity replacement?

2024-08-01 09:50:18

The purpose of capacity replacement is to curb capacity growth, but the result is just the opposite.

In recent years, there have been more and more calls to stop capacity replacement. Should the cement industry cancel capacity replacement?

Recently, China Cement Network communicated with Dr. Ma Weiping, former chairman and president of Yaobai Cement Group. Ma Weiping said that the purpose of capacity replacement was to curb capacity growth, but the result was just the opposite.

Why? Ma Weiping analysis: First, there is no clear requirement for the replaced production capacity. Many small production capacity and zombie production capacity turn into advanced production capacity with the help of capacity replacement, which aggravates the contradiction between supply and demand. Second, there is no strict requirement for replacement in different places, so many markets with relatively good demand are in deep trouble.

Ma Weiping appealed that the cement industry should keep pace with the times and revise the capacity replacement policy.

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Correlation

This article is selected from Song Zhiping's book "Reform Heart Road", which describes his motivation and effect of restructuring cement in those years, and has been published by China Cement Network. Recently, there has been a call for restructuring and mergers and acquisitions in the cement industry. Reviewing this old article may have the effect of reviewing the old and learning the new, encouraging the industry to promote a new round of restructuring, and solving the persistent problems of the industry.