The project with an investment of 6 billion yuan and an annual production capacity of 30 million tons has been put into operation! China Resources "Next City"

2024-02-23 09:13:53

Sand and gravel aggregate plate business has become the fastest growing high-margin business area of enterprises.

According to Yangcheng Evening News on February 19, the whole system of Huarun Fengkai's building materials project with an annual production capacity of 30 million tons, which is planned to invest 6 billion yuan, was completed and put into operation in 2023, with an annual output of 5.61 million tons and an output value of 700 million yuan.

It is understood that the mining right was successfully won by Zhaoqing Runxin New Materials Co., Ltd. (An indirect non-wholly owned subsidiary of Huarun Building Materials Technology) in October 2020 for 3.21 billion yuan. The reserve of mine resources is 157 million m3 (about 425 million tons) , the production scale is 11 million m3/year (about 30 million tons/year), and the transfer period is 17 years. It mainly produces building stone, assembly building , building aggregate, machine-made sand and other products.

In addition, it is reported that the sand production project with an annual output of 4 million tons will start construction in March this year. The project is planned to be put into operation in 2025, with an annual output value of about 200 million yuan.

Earlier, Jing Shiqing, president of Huarun Building Material Technology (Huarun Cement), said in an interview with the media that in recent years, Huarun Cement has continued to invest in aggregate mining business. We expect aggregate sales to exceed 40 million tons in 2023, and with the release of production capacity, sales in 2024 are expected to exceed 70 million tons, which will become a strong source of profit growth for the company.

For the future development, CR Building Materials Technology said that it would strengthen and optimize the basic building materials and functional building materials business, promote the structural building materials business in an integrated manner, incubate and cultivate the new materials business, and focus on the "4 + 1" business of cement, aggregate, concrete, artificial stone and new materials.

According to China Cement Network, on January 22, 2024, the annual output of 40 million tons of aggregate project of Chizhou China Building Material New Material Company entered the stage of equipment delivery. The successful delivery of this equipment marks that the project has entered the installation stage from the delivery stage, laying a good foundation for the promotion of follow-up projects, and is expected to be put into operation in the first half of this year. On January 26,

2024, the project of Jidong Cement Jiangjin Company with an annual output of 3 million tons of aggregate entered the stage of product shipment and sales, formally establishing a new production and operation pattern of "cement + aggregate".

It is understood that in recent years, under the background of the great development of sand and gravel aggregates, cement enterprises have vigorously expanded the business of sand and gravel aggregates by virtue of their good cash flow and high business synergy, and the importance of mines has been further highlighted.

For cement enterprises with advanced management level, advanced production technology and equipment, entering the aggregate, concrete and assembly industries is a win-win mode of enterprise value chain integration .

It is not only of great significance for cement enterprises to grow from small to large and from large to strong, but also conducive to promoting the organic integration and linkage development of cement, concrete, aggregate and prefabricated construction industries, thereby improving the quality of construction, reducing the consumption of raw materials and realizing the transformation of the mode of economic growth.

At the same time, according to the performance reports published by major cement groups, it is an indisputable fact that net profit has dropped sharply year on year. The sand and gravel aggregate plate business has become the fastest growing high-margin business area for enterprises. The development of

cement market has entered a bottleneck period, cement enterprises are actively looking for new profit growth points, and sand aggregate has become an important growth pole of cement enterprises.

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Adani is also a big man in the Indian cement industry and is the second largest cement producer in India. He entered the industry in 2022 with the acquisition of Holcim's cement business in India, which acquired about 70 million tons of cement per year for $10.5 billion. Adani plans to expand its annual cement production capacity to 140 million tons by 2028. Adani has previously invested $1.6 billion to acquire Sanchi Cement and Penna Cement, and is expected to acquire an additional 21 million tons of production capacity.