The industry trough is the best time for mergers and reorganizations, and the "New Zhejiang Phenomenon" is a vivid example. At the beginning of
the 21st century, many investors intervened in Zhejiang cement industry, and the production capacity of Zhejiang new dry process cement increased rapidly, with an annual growth rate of 156%. Subsequently, the production capacity increased, the output increased, the price declined, and the overall loss of the cement industry in the region.
Faced with the development dilemma, Zhejiang cement industry began to reflect, some industry insiders began to advocate and promote industry self-discipline, promote mergers and acquisitions, and make rational use of resources.
Subsequently, Zhejiang cement market controlled the release of production capacity beyond market consumption, overturned the previous phenomenon of small profits and quick turnover, and a new situation of reducing and increasing profits emerged. Zhejiang cement industry returned to the right track, showing a thriving trend.
Merger and reorganization is an effective way to improve the efficiency of market resource allocation and enhance the competitiveness of enterprises, as well as an important means to enhance industry concentration and resolve overcapacity. Since
this year, many documents have been issued to actively advocate and support leading enterprises in the cement industry in the region to adopt the strategy of resource integration and merger and reorganization to integrate resources in the industry.
Taking Hubei as an example, the Housing and Urban-Rural Construction Department of Hubei Province, the Provincial Department of Economy and Information Technology, the Provincial Development and Reform Commission and other departments jointly issued the Implementation Plan for the High-quality Development of Green Building Materials Industry in Hubei Province, proposing to cultivate and introduce leading enterprises with strong comprehensiveness. China Construction Third Bureau, Baoye Group, Guangsheng Group, Huaxin Cement , Gezhouba Cement, Changli Glass, Jingmen Hongnuo, Hubei yuangu, Shenzhou Building Materials and other leading enterprises are encouraged to implement mergers and reorganizations to integrate the key core resources of the industrial chain. Li Yeqing, president
of Huaxin Cement, pointed out: "Now this time should be said to be a good merger cycle, because the overall demand is declining, the market is not good, and the merger will gain a profit.". Of course, there must be people who are willing to do it, people who are willing to merge and those who are willing to be merged. "
At present, the competition for share is becoming more and more intense, the competition and cooperation relationship formed over the years has been broken, and some cement enterprises have fallen into a loss, hoping to sell some of their cement assets.". On the other hand, the current cement assets are relatively cheap, enterprises take the opportunity to acquire, can expand market share, enhance competitiveness, improve control. It is an inevitable trend for the cement industry to increase its concentration
in the future, and it is an important opportunity for the cement industry to reshape its pattern and open a new chapter of high-quality development. At a time when the
industry is facing severe challenges, it is of immeasurable strategic significance and practical utility to actively promote the upgrading of large-scale production equipment and actively promote the energy-saving technological innovation and environmental protection upgrading and transformation of the cement industry, so as to enhance the core competitiveness of cement enterprises and realize the grand blueprint of sustainable development of the industry.
To this end, 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.
