On March 24, OCC Chairman Ma Weiping and his delegation visited Red Lion Holding Group Co., Ltd. and were warmly received by Zhang Xiaohua, Chairman and General Manager of Red Lion Holding Group. The two sides had in-depth exchanges on the future development trend of the cement industry and how cement enterprises should deal with the industry dilemma.
Zhang Xiaohua said that the current cement industry is facing serious overcapacity, and the demand for cement will continue to decline in the future. Staggered peak production and industry coordination are important measures to maintain reasonable profits of the industry. The industry needs to enhance consensus, meet challenges and promote healthy and stable development of the industry. Zhang Xiaohua also pointed out that the industry should actively explore and promote the docking of large and small kilns to achieve win-win situation in the industry. At present, Zhejiang Province has formed some good experiences and practices in peak staggering production and large and small kiln docking, which can be popularized and implemented in the whole industry.
Ma Weiping believes that the cement industry needs to give full play to the role of small and medium-sized enterprises in order to cope with the current predicament. The purpose of OCC is to prevent involution and adhere to peak-shifting production and capacity reduction on demand. Maintain the prosperity and stability of the Yangtze River cement industry and achieve high-quality development. OCC operation mechanism, the first step is to negotiate the output, through repeated consultation, the enterprises along the Yangtze River reach a consensus on common peak staggering production, and restore the benign industry ecology. The second step is to take the initiative to reduce production capacity, set up a merger and acquisition fund to reduce production capacity, and use leasing, contracting, acquisition of kiln indicators, stock exchange, mergers and acquisitions, etc. Since its establishment, OCC has been promoting industry self-discipline, promoting communication and cooperation among enterprises, promoting the concept of anti-involution/on-demand production, and making suggestions on behalf of small and medium-sized enterprises.
In the future, OCC will play a role in deepening industry self-discipline and cooperation, establishing and improving industry supervision mechanism, promoting industry mergers and acquisitions, and helping the healthy development of the industry.
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