Hebei Building Materials Industry Association issued a proposal to jointly resist the "vicious competition of involution" to promote the healthy and stable development of the industry, saying that since this year, with the continuous weakening of cement market demand, the contradiction between supply and demand in the cement industry in our province has intensified, and some enterprises are still conservative in their business thinking of "keeping profits by quantity", and vicious competition occurs from time to time. The benefit of cement industry in the whole province has fallen to the lowest level in the past 10 years. If this "involution competition" continues, it will seriously hinder the healthy and stable development of the cement industry in our province. In order to fully implement the decision made by the Political Bureau of the CPC Central Committee on July 30, 2024, we should strengthen industry self-discipline and prevent vicious competition. Strengthen the mechanism of eliminating the fittest in the market, smooth the exit channels of backward and inefficient production capacity, jointly resist the "vicious competition of involution", and promote the healthy and stable development of the cement industry. The following proposal is hereby issued to all member enterprises:
Proposal of Hebei Building Materials Industry Association
to jointly resist the "vicious competition of involution" and promote the healthy and stable development
of the
industry. As the cement market demand continues to weaken, the contradiction between supply and demand in the cement industry in our province intensifies, some enterprises still adhere to the old management thinking of "guaranteeing profits by quantity", vicious competition occurs from time to time, and the benefit of the cement industry in our province has fallen to the lowest level in the past 10 years. If this "involution competition" continues, it will seriously hinder the healthy and stable development of the cement industry in our province. In order to fully implement the decision made by the Political Bureau of the CPC Central Committee on July 30, 2024, we should strengthen industry self-discipline and prevent vicious competition. In order to strengthen the mechanism of survival of the fittest in the market, smooth the exit channels of backward and inefficient production capacity, jointly resist the "vicious competition of involution" and promote the healthy and stable development of the cement industry, the following proposals are issued to all member enterprises:
First, strengthen confidence, maintain strength and take the initiative to respond. Under the situation of economic cyclical adjustment, the continuous decline of cement demand is irreversible. We should face it correctly, take the initiative to respond, strengthen confidence in development, maintain strategic strength, actively practice the industry development concept of "industry interests are greater than enterprise interests, enterprise interests are bred in industry interests", purify industry ecology and strengthen industry self-discipline. Jointly create a fair and stable market competition environment.
2. Coexistence of competition and cooperation, overall planning of production and marketing, reduction and increase of profits. We should abandon the Cold War mentality, properly control differences, establish the concept of interest community in the cement industry, optimize the allocation and efficient utilization of resources, actively control the quantity from both ends of production and marketing, reduce the quantity, do not fight price war, do not compete for share, and maintain a healthy and orderly market order.
3. Industry self-discipline, accurate peak staggering, high efficiency and rigidity. Under the current situation, peak staggering production is still the most effective way to promote supply-side structural reform and improve the serious contradiction of excess capacity in the industry. The Provincial Building Materials Industry Association will strictly comply with the decision-making plan of "Strengthening the output monitoring and early warning of building materials industry and promoting the normalization of cement peak staggering production" in the Action Plan for Energy Conservation and Carbon Reduction 2024-2025 issued by the State Council, and formulate and implement specific plans for the normalization of peak staggering production in accordance with the requirements of the competent departments of the Hebei Provincial Government. Realize accurate, efficient and normalized peak staggering production in the whole province, reduce resource consumption, reduce ineffective supply, maintain dynamic balance between supply and demand, and realize quality operation and effective development of cement industry.
Four, concentrate wisdom and cohesion, lead the dragon head and dance the dragon body. Hebei Province is a major province of cement industry, and the leading cement enterprises in the province should continue to play a leading role in the development of peak staggering production and the maintenance of market order. Small and medium-sized enterprises should actively follow up, consciously implement the requirements of peak staggering, actively practice self-discipline responsibility, abandon the thinking of "quantity, cost and profit", and firmly adhere to the concept of "price, cost and profit". All member enterprises concentrate on restoring the industry ecology, improving the market order, promoting the industry to return to a rational and healthy track as soon as possible, and making positive contributions to the steady and sustainable development of the province's economy.
Fifth, seize the opportunity, transform digital intelligence and develop new quality. In accordance with the national requirements of "carbon reduction, pollution reduction, green expansion and growth", we should speed up the application of digital and intelligent technologies, enhance the overall strength of environmental protection, energy saving, quality and safety of enterprises, and advocate the establishment of multi-dimensional performance based on innovation ability, customer satisfaction, quality improvement, brand impact, employee growth and social contribution. Stimulate the internal motivation of enterprises, enhance the growth potential, and enhance the overall level of high-quality development of the industry. The
rhythm is consistent with the dragon boat race, and the same frequency resonance creates a win-win situation. We firmly believe that under the correct leadership of the provincial Party committee, the provincial government and the provincial authorities, adhering to the common values of the cement industry, through the joint efforts of all member enterprises, we will accelerate the pace of green, low-carbon, safe and high-quality development of the cement industry in our province and make new and greater contributions to the social and economic development of the province.
