On March 13, with the official release of the Action Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Replacement, China's industrial sector ushered in an unprecedented wave of green transformation. As a representative of traditional high energy-consuming industries, the cement industry has seen the dawn of transformation and upgrading in the spring breeze of this policy.
For the cement industry, large-scale equipment renewal not only means the modernization and upgrading of production lines, but also a thorough innovation of production mode. The updated equipment will be more efficient and energy-saving, reduce energy consumption and carbon emissions, thus laying a solid foundation for achieving the goal of carbon peak and carbon neutralization in the cement industry and even in the whole industrial field. In addition, the integration of intelligent and digital technology will greatly improve production efficiency, enhance the market competitiveness of enterprises, and promote the overall level of manufacturing industry.
However, as the cement industry prepares for the dawn of equipment innovation, it has to face the reality of poor overall profitability of the industry. Since 2024, the contradiction between supply and demand of cement has intensified, prices have continued to fall, and more than 90% of cement enterprises are expected to fall into losses in the first quarter. In this context, the huge amount of money needed for equipment renewal has become a major problem for cement enterprises. The tight capital chain makes it difficult for many enterprises to take substantial steps even if they realize the necessity of equipment renewal.
Faced with the contradiction between the urgent need for equipment renewal and the shortage of funds, the cement industry and its related parties need to adopt comprehensive strategies to deal with it together.
First, policy support and fund guidance: the government should increase financial subsidies and tax incentives for the green transformation of the cement industry, set up special funds to support key enterprises in equipment renewal, and at the same time, broaden financing channels and reduce financing costs of enterprises through green credit, green bonds and other financial instruments.
Second, technological innovation and cooperation mode innovation: encourage enterprises to cooperate with universities and scientific research institutions to develop low-cost and high-efficiency environmental protection equipment, and explore new business models such as equipment leasing and contract energy management to reduce the pressure of one-time investment.
The third is to optimize the industrial layout and technological structure: cement enterprises should take the opportunity to optimize the industrial layout, eliminate backward production capacity, integrate resources through mergers and acquisitions, and improve industry concentration, so as to improve the overall operational efficiency and profitability, and broaden the capital channels for equipment renewal.
The fourth is to strengthen internal management and cost control: in the case of tight funds, enterprises should optimize the production process and reduce operating costs through fine management, and use the saved funds to update and upgrade key equipment.
Fifth, use digital technology to improve efficiency: cement enterprises should actively explore the application of cloud computing, big data, artificial intelligence and other digital technologies, improve the level of production intelligence, optimize production plans through technical means, reduce waste, improve efficiency, and indirectly alleviate financial pressure.
Generally speaking, the cement industry is in a critical period of transformation and upgrading, and equipment renewal is an important starting point to achieve green and low-carbon development. Faced with the reality of shortage of funds, cement enterprises need both internal and external repairs, not only the spring breeze of policies, but also the efforts of enterprises themselves, as well as the common support of all sectors of society. Through policy guidance, technological innovation, market regulation and other measures, the cement industry can not only overcome the current difficulties, but also take a solid step on the road of green transformation, contributing to the construction of ecological civilization and sustainable development.
China Cement Network will hold the " 11th China Cement Energy Conservation and Environmental Protection Technology Exchange Conference-Equipment Renewal Forum " in Nanjing, Jiangsu Province on June 13-14. This forum will gather government leaders, industry technical specialist, scientific research institutions, universities, cement enterprises and equipment suppliers to discuss and analyze the practical path of equipment renewal and green upgrading in the cement industry, so as to promote the industry to move towards a more energy-efficient, greener and environmentally friendly future. After the meeting, we will also organize a visit to Jurong Taini Cement Co., Ltd., a national green factory and a national green mine.
