On May 30, the 2023 annual shareholders' meeting of Conch Cement was held in Wuhu, Anhui.
Conch Cement said it planned to seek overseas expansion opportunities in Africa, Latin America and the Middle East to balance the impact of falling domestic demand. According to the big data of
China Cement Network, by 2023, Conch Cement's overseas clinker production capacity has reached 13.9988 million tons, ranking first among domestic cement enterprises, mainly distributed in Indonesia, Uzbekistan, Myanmar, Cambodia, Laos and other Central and South Asian regions.
In addition, the overseas production capacity of Conch Cement under construction is 6.107 million tons, mainly distributed in Indonesia, Uzbekistan and Laos.
Overall, in the past, the overseas development strategy of Conch Cement was mainly concentrated in Southeast Asia and Central Asia, of which Southeast Asia was the core, reaching 15.035 million tons (including construction), accounting for 75.19% of the total overseas production capacity.
Data show that at a time of weak domestic market demand and industry downturn, the overseas business of many cement enterprises will "blossom and bear fruit" in 2023, which undoubtedly greatly alleviates the operating pressure of domestic cement enterprises. The 2023 report
of Conch Cement shows that the clinker sales volume of overseas projects increased by 14% year-on-year, and the sales amount reached 4.671 billion yuan, an increase of 17.75% year-on-year; the export sales volume increased by 117.83% year-on-year, and the sales amount was 228 million yuan, an increase of 92.53% year-on-year.
Huaxin Cement 's overseas business revenue in 2023 was 5.439 billion yuan, an increase of 30% over the same period last year. At present, overseas production line projects have been expanded to the Middle East and Southern Africa. By the end of 2023, the company's overseas effective cement grinding capacity has reached 20.91 million tons, an increase of 69% over the same period last year. The report card of
Western Cement in the overseas market in 2023 is even more impressive. In 2023, it achieved an operating income of 2.711 billion yuan, an increase of 139.7% over the previous year, accounting for more than 30% of the revenue; the profit accounted for 74.1%, an increase of 56.2 percentage points over 2022.
There is no doubt that overseas development has become an important part for domestic cement enterprises to cope with the downturn of the industry and enhance their ability to resist risks and profitability.
It is worth pointing out that Conch Cement has made it clear that it will look for overseas expansion opportunities in Africa, Latin America and the Middle East, which may mean that Conch Cement may change its previous focus on expanding overseas expansion in Southeast Asia and Central Asia.
