Gao Dengbang: Take drastic measures to cut overcapacity and take a clear-cut stand to stabilize expectations

2024-01-15 22:55:30

Staggered production has been implemented for 67 years, but the production capacity of various enterprises is still expanding, and new production lines are constantly launched, so it is the common responsibility of the whole industry to create today's situation.

On January 14,

2024, China Cement Association held the Report on China's Economic Situation and the Sixth Session of the Eighth Council and the President's Meeting of 2024 in Beijing.

At the meeting, Gao Dengbang, president of China Cement Association, made a concluding speech on the meeting. Gao Dengbang said that 2024 is the year of the change of the association, and we should actively cooperate with the important work of the change of the association. The successful convening of this conference has made a good start for 2024, and the cement industry must make a good turnaround in 2024 on the basis of 2023. To this end, enterprises and associations in the whole industry should do the following three tasks well:

1. Firmly grasp enterprise innovation, only innovation can develop.

How to achieve green development and high-quality development is the key task of the cement industry in the future, otherwise, whether the enterprise achieves green development may be the last straw to crush the camel. The means to achieve green development and high-quality development is continuous innovation.

In the current severe market environment, enterprises that can achieve stable development are basically innovative enterprises. The cement industry, from vertical kiln to new dry process, from co-disposal to ultra-low emission, is the result of innovation. Every

innovation is a change, which can inject new life into enterprises and industries, and enterprises without innovation can not survive.

2. Take drastic measures to cut overcapacity.

Gao Dengbang said that in 2023, in the exchanges with more than a dozen provincial offices of industry and information technology and many large and medium-sized enterprises, we can feel that the whole industry is very anxious about the progress of capacity removal work from top to bottom, but so far there is no progress and hope in capacity removal work. If the

production capacity is not removed, there will never be peace, and the removal of production capacity cannot be small. "The whole country is a chess game of cement", no place can be alone, if the industry with serious overcapacity does not solve the problem of overcapacity, there will be no possibility of healthy development; at the same time, the upstream and downstream industrial chain of the cement industry is very long, if the cement industry does not do well in the work of capacity reduction, many industries will be dragged down, so the whole industry should establish a high degree of understanding of capacity reduction.

At present, China has about 3.56 billion tons of cement production capacity, most of which are high-end production capacity. Therefore, capacity removal will be a very painful task, but it must be carried out resolutely and resolutely, and all cement enterprises should be fully prepared. Capacity removal is imminent and there is a long way to go, and we still need everyone in the industry to brainstorm.

3. Take a clear-cut stand to stabilize expectations.

In 2023, the market was chaotic, the production capacity was excessive, the cement price was too low, and the enterprise efficiency was very poor. In fact, many enterprises are now on the verge of loss. Whether the cement industry has a profit of 20 billion yuan or 30 billion yuan in 2023 after statistics, it is meaningless. This figure is largely "decorated" with the income of aggregate and other businesses. The cement business of the whole industry must lose money. It is a natural law for

the market to develop from disorder to order, and there is no winner in disorderly competition. In the current environment, cement enterprises, no matter big or small, good or bad, new or old, have no expectation of the cement market, and can not foresee how the cement market will change in the next quarter, half a year or even longer. Only

with expectations can we have countermeasures and directions. The current state of the cement industry can no longer continue. Everyone in the industry does not want to and can not see the industry on the edge of long-term losses. Therefore, we should take a clear-cut stand to promote the good expectations of stabilizing the industry and put industry self-discipline in an important position.

Many enterprises have suffered from the "price war" in 2023. Under this premise, I believe that colleagues in the cement industry must have the confidence and ability to achieve the above three points, and the cement industry in 2024 will certainly have a good start from the trough of the previous two years.

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Correlation

Etuoke Banner Yongheng Cement Co., Ltd. was established on July 29, 2009, with its registered address located in the south of Jinghua Oxygen Plant, Qipanjing Industrial Park, Qipanjing Town, Etuoke Banner, Ordos City, Inner Mongolia Autonomous Region, and its legal representative is Wu Yongping. Its business scope includes licensed business items: production and sales of cement. General business items: sales of coal gangue, fly ash, clinker, limestone, granulated slag and gypsum.