Prevent "involution" vicious competition! New building materials industry in Guizhou Province issued a proposal!

2024-08-07 10:54:49

The introduction of the policy is a signal, which reveals the government's determination, but the real implementation still needs the joint efforts of all parties. Enterprises should respond positively, build self-discipline mechanism, start from themselves, and reduce excessive competition.

At the meeting of the Political Bureau of

the CPC Central Committee on July 30, it was pointed out 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 of economic construction in Guizhou Province, the new building materials industry is an important supporting industry to improve the living conditions of Guizhou Province, build a waste-free city and develop circular economy, and is also one of the important sources of economic tax revenue for most counties and districts in Guizhou Province. At present, the development of new building materials industry in Guizhou Province is under the triple pressures of demand contraction, supply shock and expected weakening, the contradiction between supply and demand is aggravated, the industry confidence is lacking, and the low-quality and low-price disorderly competition among industry enterprises in order to compete for limited resources leads to the rapid reduction of industry operation efficiency and innovation ability, and even some enterprises abandon the bottom line. The vicious competition situation of "bad money expelling good money" is not conducive to the high-quality development of new building materials industry in Guizhou Province in the long run. In order to implement the spirit of the Third Plenary Session of the Twentieth Central Committee of the Communist Party of China and the spirit of the recent meeting of the Political Bureau of the Central Committee, strengthen self-discipline and prevent "involution" vicious competition, we propose:

First, accurately grasp the situation and firmly enter the new stage of high-quality development of the industry. The economic structure of Guizhou Province has shifted from the stage of high-speed growth to the stage of high-quality development, and the current downward demand for building materials products is a normal trend. Under the background of the prominent contradiction between supply and demand, the industry enterprises should maintain their confidence in the steady development of the market and the steady growth of benefits, which is the basis of the high-quality development of the industry, and actively respond to market changes. Strengthen the construction of industry ecology.

2. Organizing production in an orderly manner and increasing the proportion of effective supply. The steady development of the market and the steady growth of benefits are the basis for the high-quality development of the industry. We should strictly implement the policy of normal peak staggering production in building materials industry, advocate that enterprises standardize production according to the principle of matching supply and demand, reduce the ineffective supply that lowers the level of profitability and weakens their brand value, and promote the return of industry value. Leading enterprises should stand at the height of high-quality development of the industry, take the lead in setting an example, take the lead in eliminating production, high-quality development and maintaining market order, and promote the steady growth of industry benefits with their own steady growth.

3. Promote capacity reduction and deepen supply-side structural reform. We should conform to the general trend of industrial restructuring, rely on the rule of law and market-oriented means, increase efforts to reduce production capacity, eliminate backward production capacity, and dispose of long-term unprofitable assets. We should intensify joint reorganization and market integration, encourage various forms of enterprise mergers and reorganizations, explore the establishment of regional market integration funds, and further improve the concentration of new building materials industry in Guizhou Province.

4. Regulatory authorities, industry associations and industry enterprises work together to strengthen industry self-discipline in an all-round way. We should enhance political awareness, overall situation awareness, legal awareness and innovation awareness, actively explore new forms, new ways and new methods of industry self-discipline, strictly prevent unfair competition and "involution" vicious competition, strictly prevent illegal acts such as low-quality price reduction, low-price dumping and selling to disrupt the market, avoid market trampling, and jointly create a fair and stable market environment. It is necessary to strengthen communication and coordination between the upstream and downstream of the building materials sector, the upstream and downstream of the construction industry, and all parties outside the industry, so as to achieve mutual benefit and win-win results. We should tell the whole society the story of Guizhou building materials, carry forward the spirit of Guizhou building materials, and strive to promote the high-quality operation of Guizhou building materials industry to "reduce losses, turn around losses and increase efficiency". The introduction of the

policy is a signal, which reveals the government's determination, but the real implementation still needs the joint efforts of all parties. Enterprises should respond positively, build self-discipline mechanism, start from themselves, and reduce excessive competition. Trade associations and regulatory authorities also need to work together to improve relevant laws and regulations to provide protection for the healthy development of the market.

Under the background of unified market, the fluctuation of building materials market in Guizhou Province affects the national market. Strengthening industry self-discipline can not only promote the sustainable growth of new building materials industry in Guizhou Province, but also inject positive momentum into the recovery of the national industry. We have reason to expect that with the joint efforts of the government, enterprises and all sectors of society, the involution phenomenon will gradually decrease, and a healthier and more dynamic market environment will emerge in the near future. Co-sponsors of the

Proposal: Guizhou Building Materials Federation, Guizhou Cement Industry Association, Guizhou Sandstone Industry Association, Guizhou Ready-mixed Concrete Industry Association, Guizhou Stone Industry Association, Guizhou Wall Material Industry Association, Guizhou Plastics Industry Association, Guizhou Concrete Products Association, Guizhou Concrete Admixture Association, Guizhou Building Waterproofing Association.

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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.