Recently, the National Development and Reform Commission and other five departments issued the Special Action Plan for Energy Conservation and Carbon Reduction in Cement Industry.
It is mentioned that the industrial layout and capacity regulation should be optimized, and leading cement enterprises should be encouraged to carry out cross-regional and cross-ownership mergers and reorganizations.
According to incomplete statistics, since the 14th Five-Year Plan, various ministries and commissions of the state have repeatedly issued documents to encourage leading building materials enterprises to carry out resource integration and merger and reorganization, improve industry concentration, optimize industrial structure and competition pattern, and promote high-quality development of the industry. In October
2021, the National Development and Reform Commission issued the Action Plan for Promoting Energy Conservation and Carbon Reduction with Strict Energy Efficiency Constraints in Key Metallurgical and Building Materials Industries (2021-2025), which said that it would accelerate the m erger and reorganization of steel, electrolytic aluminium, cement, flat glass and other industries. In December
2021, the Ministry of Industry and Information Technology issued the "14th Five-Year Plan for the Development of Raw Materials Industry", which shows that leading enterprises should be expanded and strengthened. We should adhere to the combination of market dominance and government promotion, remove obstacles to cross-regional mergers and reorganizations, clear up restrictions such as market segmentation and regional blockade, coordinate and solve major problems of cross-regional mergers and reorganizations of enterprises, support enterprises to speed up cross-regional and cross-ownership mergers and reorganizations, and improve industrial concentration. In February
2022, the National Development and Reform Commission issued the Guidelines for the Implementation of Energy Conservation and Carbon Reduction Upgrading in Key Areas of High Energy Consumption Industries (2022 Edition), which shows that key enterprises should be guided to give full play to their advantages in capital, talent and technology. We will voluntarily and independently carry out mergers and reorganizations in this field by eliminating the superior and eliminating the inferior and replacing production capacity. In November
2022, the Ministry of Industry and Information Technology issued the Implementation Plan of Carbon Peak in Building Materials Industry, encouraging leading building materials enterprises to carry out resource integration and merger and reorganization, and optimizing the allocation of production resources and the spatial layout of the industry.
Local policies also responded positively, referring to specific enterprises more pertinently, and clearly supporting their market integration through acquisition and other means.
For example, the Housing and Urban-Rural Construction Department of Hubei Province, the Provincial Economic and Information Department, 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". 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. The Implementation Plan for Continuous Improvement of Air Quality in Guizhou Province (Draft for Consultation) issued by the Department of Ecology and Environment of
Guizhou Province shows that. Support Southwest Cement , Conch Cement and other enterprises to merge and reorganize small and medium-sized cement enterprises in the province through capacity replacement.
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.
