Resurrection of "Zombie Production Capacity" Exceeds 30 Million Tons of Digital Reading Capacity Replacement

2024-04-18 09:16:13

Since the implementation of the Measures, the cement industry has set off a wave of new line boom.

On December 31,

2017, after the expiration of the "Measures for the Implementation of Capacity Replacement in Some Industries with Serious Overcapacity" (No.127 of the Ministry of Industry and Information Technology), in order to ensure the continuity of the policy, the Ministry of Industry and Information Technology issued the "Measures for the Implementation of Capacity Replacement in Cement and Glass Industry" (hereinafter referred to as the "Measures"). In order to promote the adjustment of industrial structure and guide the orderly withdrawal of excess cement production capacity.

Since the implementation of the Measures, the cement industry has set off a wave of new line boom. Statistics show that from 2018 to 2023, there are 57 production lines in the national cement industry, with a total capacity of about 91 million tons.

From the perspective of time dimension, 2022 is the peak production period, with 17 production lines put into operation, and the total clinker production capacity is about 29 million tons.

From the perspective of spatial dimension, capacity replacement projects involve 19 provinces, of which Guangxi has the largest number of production lines, reaching 13, with a total capacity of 19.778 million tons, while Anhui, Guizhou and Yunnan all have 5 production lines, ranking second.

 

According to the distribution of enterprises, many enterprises have built new production lines through the capacity replacement policy, including 14 new production lines of China Building Materials, with a total capacity of 24.397 million tons, and 4 new production lines of Conch Cement. The total production capacity is 6.665 million tons; Hongshi Cement has newly built 3 production lines with a total production capacity of 4.278 million tons.

From the perspective of reviving "zombie production capacity": the purpose of implementing the Measures is to promote the clearance of production capacity in the cement industry, but there are also many "zombie production capacity" which are "revived" by means of capacity replacement. From 2018 to 2023, a total of 41.3621 million tons of zombie production capacity participated in capacity replacement, and more than 30 million tons of "resurrection" production capacity.

According to incomplete statistics, there are 40 capacity replacement projects under construction and proposed to be put into operation in 2024-2026, involving 61.93 million tons of clinker production capacity.

In general, since the implementation of the Capacity Replacement Measures, the cement industry has put into operation about 92 million tons of clinker production capacity, shut down 108 million tons of production capacity, replaced 15 million tons of production capacity, and revived more than 30 million tons of "zombie production capacity".

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Correlation

Etuoke Banner Yongheng Cement Co., Ltd. was established on July 29, 2009, with its registered address located in the south of Jinghua Oxygen Plant, Qipanjing Industrial Park, Qipanjing Town, Etuoke Banner, Ordos City, Inner Mongolia Autonomous Region, and its legal representative is Wu Yongping. Its business scope includes licensed business items: production and sales of cement. General business items: sales of coal gangue, fly ash, clinker, limestone, granulated slag and gypsum.