Production capacity surged by more than 200 million tons in three years! Huaxin Cement enters the aggregate market on a large scale!

2024-04-19 13:21:26

It is reported that the expansion of Huaxin cement aggregate production capacity is mainly concentrated in the past three years. According to the previous announcement data, by the end of 2020, the aggregate production capacity of Huaxin Cement was only 55 million tons per year, while by the end of 2023, its aggregate production capacity had reached 277 million tons, with an increase of 220 million tons.

Recently, China Cement Network released the TOP20 production capacity ranking of China's sand and gravel aggregates in 2023. According to the list, Huaxin Cement 's aggregate production capacity in 2023 was 277 million tons, ranking first.

In recent years, Huaxin Cement has been expanding its aggregate business. After more than ten years of exploration and expansion, the scale of aggregate business has been greatly increased. It is reported that the expansion of Huaxin cement aggregate production capacity is mainly concentrated in the past three years. According to the previous announcement data, by the end of 2020, the aggregate production capacity of Huaxin Cement was only 55 million tons per year, while by the end of 2023, its aggregate production capacity had reached 277 million tons, with an increase of 220 million tons.

It is understood that as of 2023, the aggregate production capacity of China's building materials is 231 million tons, and the new aggregate production capacity of Huaxin Cement in three years is on top of the aggregate production capacity of China's building materials. According to the aggregate production capacity trend

of Huaxin Cement

in recent years, the domestic aggregate production capacity of Huaxin Cement is mainly distributed in 8 provinces and cities, including Hubei, Yunnan, Chongqing, Hunan, Sichuan, Guizhou, Henan and Tibet. In addition, six aggregate projects are operated overseas in Tajikistan, Cambodia, Tanzania and South Africa.

It is worth noting that the sales volume and operating income of Huaxin Cement Aggregate are also increasing substantially, while maintaining a high gross profit margin. In 2020, its aggregate sales volume was 23 million tons, reaching 130 million tons in 2023, and its business income also increased to 5.364 billion yuan. In 2020-2023, the gross profit rate of aggregate was 62.59%, 65.62%, 55.27% and 45.88% respectively.

Will Huaxin Cement continue to step up its aggregate business? Li Yeqing, president of Huaxin Cement, said recently that the sand and gravel industry is making good profits at present, but people are generally pessimistic about future expectations. He believes that the sand and gravel industry is a more "short-legged" product than the cement industry. Although the concentration of the whole sand and gravel industry in China is not high, the concentration of the sand and gravel industry in the actual regional market is already very high. From this point of view, aggregate is still an industry that can be expected.

It is reported that in 2024, Huaxin Cement plans to sell 156 million tons of aggregate, with a planned capital expenditure of about 6.9 billion yuan, focusing on aggregate, concrete, overseas cement production capacity and alternative fuel construction.

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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.