Cement Net Exclusive: I don't quite understand the capacity replacement plan for the technical transformation project of Xianhe White Cement Production Line

2024-08-21 13:35:37

Recently, Jiangxi Provincial Department of Industry and Information Technology has two pieces of public information, one is about the public announcement of Jiangxi Xianhe White Cement Co., Ltd. 'S cement clinker production capacity replacement plan; the other is about the public announcement of Jiangxi Xianhe White Cement Co., Ltd.' S 100,000 tons/year cement clinker original replacement capacity withdrawal. It will be completed and put into operation in June 2019. The shutdown time is June 25, 2024, before the new line is ignited and put into operation. From the above information, we can see that the production capacity of the new line of the technical transformation project of Xianhe White Cement Production Line is composed of 80,000 tons of Xianhe White Cement + 200,000 tons of Zhonglin White Cement in Shanggao County + 100,000 tons of Zhangshu New Building Materials Co., Ltd.

Recently, Jiangxi Provincial Department of Industry and Information Technology has two pieces of public information, one is about the public announcement of Jiangxi Xianhe White Cement Co., Ltd. 'S cement clinker production capacity replacement plan; the other is about the public announcement of Jiangxi Xianhe White Cement Co., Ltd.' S 100,000 tons/year cement clinker original replacement capacity withdrawal. The

capacity replacement plan is as follows:

the transferred project is Jiangxi Xianhe White Cement, with an approved capacity of 380,000 tons/year. According to the announcement, the project was ignited and put into operation in June 2019.

Since it has been put into operation for a long time, in the 2023 "List of Cement Clinker Production Lines in Jiangxi Province" published on June 5, 2024, it is still the new dry process white cement production line with an annual output of 80,000 tons put into operation in 2007 (listed in the previous list), and the kiln specification is Ф2.5 * 42 m (the previous list is Ф2.5 * 40 m). It will be completed and put into operation in June 2019. One of the

capacity transfer projects is Shanggao Zhonglin White Cement Co., Ltd., with an annual production capacity of 200,000 tons of white cement and a kiln specification of Φ3.5 * 60 m. The shutdown time is June 25, 2024, before the new line is ignited and put into operation. The production line was completed and put into operation in May 2017 in the 2023 list (the previous list was May 2000 or blank). It can be seen

from the announcement of production capacity withdrawal that the second production capacity transfer project is the cement clinker production capacity of Zhangshu New Building Materials Co., Ltd. of 100,000 tons/year (the previous list is blank), and the kiln specification is Φ3.0/2.5 * 60 m. On June 14, 2024, the Provincial Department of Industry and Information Technology "Announcement on the Replacement Scheme of Cement Clinker Production Capacity of Jiangxi Xianhebai Cement Co., Ltd." Specified that the shutdown time was June 1, 2024, before the new line was ignited and put into operation.

From the above information, we can see that the production capacity of the new line of the technical transformation project of Xianhe White Cement Production Line is composed of 80,000 tons of Xianhe White Cement + 200,000 tons of Zhonglin White Cement in Shanggao County + 100,000 tons of Zhangshu New Building Materials Co., Ltd. This is the approved capacity of 380000 tons in the capacity replacement plan.

If the new line of the technical renovation project of Xianhebai Cement Production Line was ignited and put into operation five years ago, how can the capacity replacement plan be formulated this year? Is it still the original 80000 tons production line on the latest list? The capacity sold was not shut down until this year?

Xianhebai Cement relies on the original 80,000-ton production line to carry out technical transformation, and this part of production capacity is replaced by the same amount (1:1). The replacement of 300,000 tons of production capacity from Zhonglinbai Cement in Yichun City and new building materials in Zhangshu City in other prefecture-level cities to Xinyu City in prefecture-level cities can also be carried out according to the relocation of production facilities that do not belong to the backward production capacity explicitly eliminated by the state due to the adjustment of local development planning (1:1)?

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Correlation

On November 21, the Western Construction (002302) issued a prospectus for issuing stocks to specific targets in 2021. The company plans to introduce Conch Cement as a strategic investor through this issue, and Conch Cement will subscribe for 183 million shares, accounting for 12.48% of the total equity after the issue, becoming the second largest shareholder. The purpose of this issue is to optimize the capital structure, supplement liquidity and repay bank loans, which is expected to bring the company an annual increase of 8.85 billion yuan in operating income and a total profit of 708 million yuan, up 38.71% and 78.23% respectively from 2023.