Jiangxi Province: Further Strengthen Industry Self-discipline and Prevent Involution Vicious Competition!

2024-08-29 09:23:22

Recently, Jiangxi Cement Association issued the Proposal on Further Strengthening Industry Self-discipline and Preventing Involution Vicious Competition, which includes the following four points: 1. Recognize the industry situation and strengthen confidence in development; 2. Strengthen industry self-discipline and prevent vicious competition; 3. Firmly stagger peak production and alleviate the contradiction of surplus; 4. Accelerate transformation and upgrading and promote high-quality development. It is proposed that all cement enterprises in the province should recognize the situation and take the initiative to respond to it. The cement industry has entered a period of declining demand, which is the general trend of the economic development cycle and is irreversible in the short term.

Recently, Jiangxi Cement Association issued the Proposal on Further Strengthening Industry Self-discipline and Preventing Involution Vicious Competition, which includes the following four points: 1. Recognize the industry situation and strengthen confidence in development; 2. Strengthen industry self-discipline and prevent vicious competition; 3. Firmly stagger peak production and alleviate the contradiction of surplus; 4. Accelerating transformation and upgrading and promoting high-quality development.

Member units:

In the past three years, the demand for cement in our province has shown a trend of sharp decline, especially this year, the decline in cement production is too large, ranking last in the country, the contradiction between supply and demand is extremely prominent, the industry efficiency has dropped sharply, and is facing unprecedented tremendous pressure and severe challenges. At the meeting of the Political Bureau of

the Central Committee of the Communist Party of China on July 30, 2024, an important deployment was made to "strengthen industry self-discipline and prevent vicious competition in involution", in order to fully implement the spirit of the meeting of the Political Bureau of the Central Committee of the Communist Party of China and promote the healthy development of the cement industry in our province. The following proposals are issued to the cement enterprises in the whole province:

First, recognize the situation of the industry and strengthen confidence in development. It is proposed that all cement enterprises in the province should recognize the situation and take the initiative to respond to it. The cement industry has entered a period of declining demand, which is the general trend of the economic development cycle and is irreversible in the short term. We should further strengthen our confidence in the high-quality development of the industry, always adhere to the high-quality development ideas of "stability first, steady progress, quality first and efficiency first", actively practice the concept of "industry interests are greater than enterprise interests, and enterprise interests are more important than industry interests", and jointly promote the healthy and high-quality development of the industry.

2. Strengthen industry self-discipline and prevent vicious competition. It is advocated that the cement industry in the whole province conscientiously implement the Regulations on Fair Competition Review, give full play to the leading role of leading enterprises, further strengthen industry self-discipline, establish a fair, just and harmonious industry ecology, consciously abide by market rules, enhance social responsibility, maintain good order in the industry, and resolutely oppose any form of involution. Do not be the destroyer of the industry ecology, and jointly promote the healthy and sustainable development of the industry.

3. Firmly stagger peak production and alleviate the contradiction of surplus. It is proposed that cement enterprises in the whole province actively implement the Action Plan for Energy Conservation and Carbon Reduction in 2024-2025 (Guofa [2024] No.12) issued by the State Council. The National Development and Reform Commission and other departments issued the "Special Action Plan for Energy Conservation and Carbon Reduction in Cement Industry" (Development and Reform Environmental Resources [2024] 733) and other documents put forward the requirement of "promoting the normalization of cement peak staggering production", and carried out scientific peak staggering and precise peak staggering under the overall planning of the association, regardless of conditions and striving to set an example, from "I want to stagger the peak" to "I want to stagger the peak". Really alleviate the contradiction of excess capacity through peak staggering, and promote the healthy development of the industry.

4. Accelerating transformation and upgrading and promoting high-quality development. It is proposed that all cement enterprises in our province should speed up the application of digital intelligent green technology, speed up the promotion of the overall strength of enterprises in energy saving, environmental protection, quality and safety, speed up the withdrawal of backward production capacity, speed up the linkage development with upstream and downstream industries, speed up the development of new quality productivity, and speed up the green, low-carbon and high-quality development of the industry.

Jiangxi Cement Association

August 28

, 2024
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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.