Guangdong Cement Industry Association Proposes: No Price War, No Share Competition

2024-08-12 17:01:27

In order to prevent the vicious competition of "involution", restore the fragile situation of ecological construction of cement industry in Guangdong Province, promote enterprises to regain confidence, overcome difficulties and challenges, and regain confidence in steady growth, we propose to all member enterprises to organize production activities in accordance with market demand, actively control the quantity from both ends of production and marketing, reduce the quantity with the trend, and not fight price wars. To achieve "volume reduction without profit reduction" or "volume reduction with profit increase".

Recently, the Guangdong Cement Industry Association issued a proposal to jointly resist the "vicious competition of involution" and promote the new quality development of the industry, saying that in order to prevent the "vicious competition of involution", restore the fragile situation of the ecological construction of the cement industry in Guangdong Province, promote enterprises to regain confidence, overcome difficulties and challenges, and regain confidence in stable growth. We propose to all member enterprises to organize production activities according to market demand, 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 achieve "quantity reduction without profit reduction" or "quantity reduction with profit increase" by strengthening supply-side control.

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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.