Meet the relevant conditions can be 1:1 replacement of cement production capacity replacement method (2024 version) draft release!

2024-06-18 15:18:59

Recently, in order to further optimize the industrial layout of the cement glass industry, promote the dynamic balance between supply and demand in the market, and promote the high-quality development of the cement glass industry, the Ministry of Industry and Information Technology revised and formed the Implementation Measures for Capacity Replacement of the Cement Glass Industry (2024 edition).

Recently, in order to further optimize the industrial layout of the cement and glass industry, promote the dynamic balance of market supply and demand, and promote the high-quality development of the cement and glass industry, the Ministry of Industry and Information Technology revised and formed the Measures for the Implementation of Capacity Replacement in the Cement and Glass Industry (2024) (Draft for Comments) (hereinafter referred to as the Measures). According to the

requirements of the Measures, it is strictly forbidden to put on record and build new cement clinker projects to expand production capacity. If it is really necessary to build or rebuild, it is necessary to formulate a capacity replacement plan and implement capacity replacement. The energy efficiency of new production lines must reach the benchmark level of energy efficiency in the cement and glass industry required by the Benchmark Level and Benchmark Level of Energy Efficiency in Key Industrial Areas (2023 Edition).

The Measures point out that cement clinker production capacity can not be used for capacity replacement in four cases.

1. According to the requirements of the latest version of the Guiding Catalogue of Industrial Structure Adjustment, the production capacity belongs to the national elimination category; the production capacity of the production line that has enjoyed the capacity withdrawal subsidy; the production capacity of the cement clinker that has incomplete approval procedures such as filing, environmental assessment and energy assessment, or has no production license for cement products or the license has expired, and has not obtained the emission permit or the license has expired according to law.

2. Cement clinker production capacity is not within the scope of the compliance list submitted to the Ministry of Industry and Information Technology by the competent departments of industry and information technology at the provincial level every year.

3. The energy efficiency level can not reach the cement clinker production capacity required by the benchmark value of the latest edition of Benchmark Level and Benchmark Level of Energy Efficiency in Key Industrial Areas.

4. For two consecutive years, the annual output of cement clinker production line is less than 30% of the annual capacity.

The Measures require that the production capacity of the cement clinker production line used for replacement cannot be split and transferred .

With regard to the replacement ratio, the Measures point out that 1:1 replacement can be implemented if the relevant conditions are met. The specific cement clinker production capacity replacement ratio is as follows:

1. The replacement ratio of production capacity replacement construction projects located in key air pollution prevention and control areas and non-key air pollution prevention and control areas stipulated by the state shall not be less than 2:1 and 1.5: 1, respectively. The proportion of capacity replacement is defined according to the construction site area. The key areas of air pollution prevention and control are defined according to the Opinions of the Central Committee of the Communist Party of China and the State Council on Comprehensively Strengthening the Protection of the Ecological Environment and Resolutely Fighting the Strong Battle of Pollution Prevention and Control, as well as the relevant documents of the Ministry of Ecology and Environment.

2. The capacity replacement ratio of the same legal person in the same plant area is 1:1.

3. The cement clinker production line restricted by the national industrial structure adjustment catalogue shall be used as the replacement index and the inter-provincial replacement cement clinker index, and the replacement ratio of production capacity shall not be less than 2:1.

4. The replacement ratio of production capacity in Tibet Autonomous Region is 1:1.

5. Cement clinker construction projects with industrial waste residue, tailings and other solid wastes as the main raw materials and limestone substitution rate not less than 90% can implement equivalent replacement of production capacity in the province.

The Measures also point out that new cement kiln production lines in Hubei, Yunnan, Guizhou, Sichuan and Anhui provinces can dispose of phosphorus (titanium, fluorine) gypsum and replace more than 70% of limestone raw materials without increasing the total production capacity of cement clinker based on 2020 in the province. According to the disposal amount of phosphorus (titanium, fluorine) gypsum, the number and layout of new projects are scientifically and reasonably determined, and the equivalent replacement is implemented. The newly-built cement clinker production line of phosphorus (titanium, fluorine) gypsum without capacity replacement shall not be used for capacity replacement, and the capacity of the production line constructed through capacity replacement may continue to be used for capacity replacement according to the replacement method.

In addition, new cement clinker production lines located in key areas of air pollution prevention and control stipulated by the state or in provinces and regions where the utilization rate of cement clinker production capacity is less than 50% shall not be replaced from outside the province in principle.

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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.