Local support for cement industry integration! Many companies have expressed their views..

2024-09-29 14:32:32

Industry insiders said that the merger and reorganization of the cement industry is the only way to transform and upgrade the industry and achieve high-quality development. At present, the problem of overcapacity in China's cement industry is prominent, which seriously affects the overall efficiency and sustainable development of the industry. Through mergers and reorganizations, we can effectively eliminate backward production capacity, optimize the industrial layout, improve industry concentration, and make room for the healthy development of the industry.

On September 25, the Guizhou Provincial Office of Industry and Information Technology and other nine departments issued a circular on the implementation of opinions on promoting the steady growth of the building materials industry in Guizhou Province, promoting transformation and increasing benefits.

The circular put forward the main objectives of the cement industry, and by 2027, the cement industry will have achieved phased results in eliminating excess capacity.

The circular said that cement enterprises should be supported to promote the implementation of cement production capacity integration through mergers and acquisitions, and the cities (States) where the production capacity is transferred should not set restrictive conditions. Promote the solution of the remaining problems of "inconsistent approval and construction" in cement clinker enterprises.

It is understood that in recent years, 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.

Chongqing Municipal Commission of Economy and Information Technology issued the Implementation Plan of Chongqing Material Industry Carbon Peak: encourage superior enterprises to integrate the city's inefficient production capacity through market-oriented mergers and reorganizations. Gradually withdraw from the cement clinker production line of 2500 tons/day or less (except special cement). The Department of Housing and Urban-Rural Development of

Hubei Province , the Department of Economy and Information Technology of Hubei Province, the Development and Reform Commission of Hubei Province and other departments jointly issued the Implementation Plan for the High-quality Development of Green Building Materials Industry in Hubei Province: China Construction Third Engineering 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 key core resources of the industrial chain.

Shaanxi Provincial Department of Industry and Information Technology issued the Implementation Plan of Shaanxi Building Materials Industry Carbon Peak: encourage leading enterprises in the industry to carry out resource integration and merger and reorganization , and optimize the allocation of production resources and the spatial layout of the industry. The Department of Economy and Information Technology

of Sichuan Province issued the Implementation Plan of Sichuan Building Materials Industry Carbon Peak: encourage leading enterprises to carry out resource integration and merger and reorganization , and optimize the allocation of production resources and the spatial layout among industries.

Fujian Provincial Department of Industry and Information Technology, the National Development and Reform Commission, the Department of Ecology and Environment, and the Department of Housing and Urban-Rural Development jointly issued the Implementation Plan of Fujian Building Materials Industry Carbon Peak: encourage building materials enterprises to carry out resource integration and merger and reorganization , and optimize the allocation of production resources and the spatial layout of the industry. Explore market-oriented and legalized capacity withdrawal mechanism. In terms of

enterprises, Conch Cement said recently that in the future, it will seize the opportunity to deeply reshape the market structure of the domestic cement industry, promote mergers and acquisitions of high-quality projects, and continuously optimize the market layout.

Jidong Cement said in June this year that it would accelerate the strategic integration of key markets, focus on Beijing-Tianjin-Hebei, Northeast China and Shanxi regions, accelerate the efficiency of regional mergers and reorganizations, and enhance market control and voice. Construct a new pattern of coordinated development of "Beijing-Tianjin-Hebei + Northeast + Northwest".

Shangfeng Cement also indicated that it would continue to focus on the development strategy of "one main and two wings", focus on the main industry of cement building materials, cultivate the extension wing of the industrial chain and the new economic equity investment wing, actively integrate industry resources , and seize opportunities to enhance the competitiveness of the main industry.

Industry insiders said that the merger and reorganization of the cement industry is the only way to transform and upgrade the industry and achieve high-quality development. At present, the problem of overcapacity in China's cement industry is prominent, which seriously affects the overall efficiency and sustainable development of the industry. Through mergers and reorganizations, we can effectively eliminate backward production capacity, optimize the industrial layout, improve industry concentration, and make room for the healthy development of the industry.

All can be viewed after purchase
Correlation

On November 21, the Western Construction (002302) issued a prospectus for issuing stocks to specific targets in 2021. The company plans to introduce Conch Cement as a strategic investor through this issue, and Conch Cement will subscribe for 183 million shares, accounting for 12.48% of the total equity after the issue, becoming the second largest shareholder. The purpose of this issue is to optimize the capital structure, supplement liquidity and repay bank loans, which is expected to bring the company an annual increase of 8.85 billion yuan in operating income and a total profit of 708 million yuan, up 38.71% and 78.23% respectively from 2023.