Sichuan Cement Association
on "Strengthening Industry Self-discipline and Preventing'Involution 'Vicious Competition"
All enterprises in the cement industry
in Sichuan Province:
The meeting of the Political Bureau of the Central Committee of the Communist Party of China on July 30 pointed out that "industry self-discipline should be strengthened to prevent" involution "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 a populous and cement province, Sichuan has a large number of excellent cement enterprises with various systems. The production, operation and market competition of the whole industry have been stable and orderly, which has effectively promoted the economic and social development of Sichuan. However, in recent years, with the downturn of real estate, the slowdown of infrastructure project construction, the technological progress of enterprises and the increase of production capacity, the market demand for cement has been shrinking. Overcapacity is becoming more and more serious, the contradiction between production and marketing is becoming increasingly prominent, enterprises are in a state of overall vicious and disorderly competition, and the industry is in a serious loss situation.
In order to fully implement the spirit of the Third Plenary Session of the Twentieth Central Committee of the Communist Party of China and the spirit of the meeting of the Political Bureau of the Central Committee on July 30, strengthen industry self-discipline, prevent "involution" vicious competition, reverse the overall decline and loss of the industry, and promote the sustainable and healthy development of the industry. We propose to all enterprises in the whole industry in the province:
First, understand the spirit of the Central Committee and strengthen confidence in
development. The Political Bureau of the Central Committee of the Communist Party of China pointed out at its meeting on July 30 that "the adverse effects brought about by the current changes in the external environment are increasing, the effective domestic demand is insufficient, and the economic operation is divided." There are still many potential risks in key areas, and there are pains in the transformation of new and old kinetic energy. These are the problems in the process of development and transformation. We should not only enhance risk awareness and bottom line thinking, but also maintain strategic strength, firm confidence in development and sing the "bright theory" of China's economy.
Cement industry, as a national basic building material industry, is closely related to the national economic development cycle. At present, the decline of cement demand and the prominent contradiction between production and marketing are objective phenomena and inevitable problems in the process of national economic construction, as well as the necessary "labor pains" period for the cement industry to change from high-speed growth to smooth operation. The rapid development of cement industry in Sichuan Province has played a great role in regional economic and social development, and at the same time, it has encountered serious overcapacity without exception. Cement enterprises in the whole province should deeply study and comprehend the spirit of the Central Conference, fully understand the important connotation and significance of "strengthening industry self-discipline and preventing vicious competition of involution" emphasized by the Political Bureau of the Central Committee of the Communist Party of China at its meeting on July 30, further emancipate the mind, innovate with keen determination, actively respond to it, firmly practice "internal skills" and maintain strategic strength. Effectively safeguard the production and operation of the industry and the stability of market order, create tax revenue for the government, ensure employment for the local government, promote social stability, make profits for enterprises, and seek welfare for employees.
2. Adhering to the policy principles and fulfilling the corporate responsibility
, the smooth operation and benefit growth of the cement industry are the basic requirements and important components of China's high-quality development. All cement enterprises in the province should improve their political standing, strengthen their responsibilities, strengthen the research and prediction of the relationship between supply and demand in the market, and effectively guarantee the supply of cement. Effectively alleviate the contradiction of excess capacity, synchronously and scientifically control energy consumption, reduce pollutant emissions, maintain the orderly and smooth operation of the industry, serve local economic construction and social development, and promote the steady growth and benefit of the cement industry in Sichuan Province. We must resolutely implement the cement industry policy and capacity replacement measures, conform to the 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 clean up and dispose of long-term production lines. We will intensify joint reorganization and market integration, encourage various forms of enterprise mergers and reorganizations, and further improve industry concentration. We should promote the sustainable development strategy, establish the concept of green development, integrate energy conservation, environmental protection, green low-carbon and social responsibility into the enterprise development strategy, continuously improve the core competitiveness of enterprises through technological innovation, management upgrading and ultra-low emission transformation, and achieve win-win economic and social benefits.
3. To put an end to vicious competition and build a good ecological environment
, all cement enterprises in the province should resolutely implement the relevant documents and system requirements of the relevant ministries and commissions of the state, the Economic and Credit Department of Sichuan Province, the Department of Ecological Environment and the Cement Association of Sichuan Province on the normalization of peak staggering production, organize production scientifically, effectively control the supply side, and strive to achieve the goal. Firmly do a good job of peak staggering and kiln shutdown, and effectively reduce and digest the contradiction between production and marketing. All cement enterprises
in the province should abandon the traditional concept of "output is benefit, more production is more profit", and produce in a scientific, orderly and standardized manner according to the approval of the competent government departments, not pursuing more production, not blindly overproducing. We should strengthen industry communication and enterprise dialogue, abandon the Cold War mentality, not vicious competition, not "cheap" products, not "involution" marketing, consciously resist the use of low-price dumping, loss-making sales and other improper means, jointly create a fair and stable market environment and competition order, build a good industry ecology, and reduce waste of resources and environmental pressure.
4. Strengthen market self-discipline and overcome industry difficulties. All cement enterprises
in the province should actively promote the positive energy of the industry, actively practice the industry culture with value creation as the core and fair competition as the basis, and jointly build a more healthy, harmonious and efficient sustainable development industry ecology. Spread the "good voice" of the cement industry in Sichuan Province, publicize the "good story" of the cement industry in Sichuan Province, and enhance the overall competitiveness of the industry. Sichuan Cement Association will give full play to the advantages of the industry platform and organization, and report the difficulties and suggestions of the industry to the relevant government departments in order to seek more policy support, guidance and help. All cement enterprises
in the province should stand at the height of the industry, make responsible decisions on the production and operation behavior of enterprises, do not talk about conditions in eliminating and closing backward and inefficient production capacity, carrying out the task of peak staggering and kiln shutdown, building a good market order, and fulfilling the self-discipline responsibility of the industry, so as to set an example and take the responsibility bravely. Collectivized enterprises in Sichuan or major leading enterprises should also take the lead in practicing industry self-discipline in their respective regions, infecting and driving other enterprises in the region to build industry ecology and overcome difficulties together. Other enterprises should also move in the opposite direction, not to be the "destroyer" of the industry ecology, not to be the "speculator" of market self-discipline.
At present, in the grand wave of comprehensively promoting the great rejuvenation of the Chinese nation, Sichuan has the innate advantage of "large population and vast land", and the cement industry in Sichuan Province must be pregnant with unlimited business opportunities in the crisis, "see the rainbow after the storm"! We firmly believe that under the scientific guidance of the important spirit of the 20th National Congress of the Communist Party of China, the Third Plenary Session of the 20th Central Committee of the Communist Party of China and the meeting of the Political Bureau of the Central Committee on July 30, and under the correct guidance of the governments at all levels in Sichuan Province and the competent departments of relevant industries, through the unity of cement enterprises in the whole province, we will surely be able to promote the cement industry in the whole province. Make new achievements and contributions to the economic construction and social development of the whole province!
Sichuan Cement Association
August 12
, 2024