last year, domestic cement enterprises have begun to gradually supplement the production capacity of production lines in accordance with relevant regulations. This not only enables the compliance of overproduction capacity, but also helps enterprises to optimize the layout of production capacity and clean up clinker production capacity with low competitiveness or poor market prospects.
As a giant in the domestic cement industry, Conch Cement can achieve today's development results, which is closely related to its keen market sense and reasonable industrial layout. So, in the process of this round of replenishment of production capacity, what kind of operation did Conch Cement do?
Statistics show that by August 2025, Conch Cement has at least 17 production lines with a capacity of 20581t/d, with a total annual capacity of more than 6.38 million tons. From the regional point of view, only Anhui is the production capacity outside the province, and all the production capacity comes from Guizhou Province .
From the above trends, Conch Cement has taken the opportunity of this round of capacity adjustment to focus on complementing the clinker production capacity along the Yangtze River in Anhui Province, and shut down three 4500t/d clinker production lines in Guizhou Province, with a total annual capacity of 4.185 million tons, and the total clinker production capacity in Guizhou Province will also be increased from 17.577 million tons at present. To about 13.7 million tons,
the intention of Conch Cement to shrink the production capacity layout in Guizhou and focus on strengthening the production capacity advantages along the Yangtze River is more obvious, which is also closely related to the current situation of Guizhou cement industry and the unique location advantages of Anhui.
Guizhou Cement Market Dilemma
Guizhou Cement Market has been facing multiple structural difficulties in recent years, and the industry situation is extremely severe.
By 2024, the designed production capacity of cement clinker in Guizhou will reach 87.8466 million tons, and the cement production capacity will be about 150 million tons . On the demand side, cement production has been significantly reduced from 110 million tons in 2018 to 52.69 million tons in 2024, with actual demand of about 40 million tons , only a fraction of the total cement production capacity, and the operation rate of cement kilns is less than 30%.
Guizhou has 36 production lines with a scale of more than 5000t/d, accounting for 45%. Even if all production lines with a scale of less than 5000t/d are shut down, Guizhou still faces a serious problem of overcapacity. According to local enterprises, the cement production line in Guizhou is only open for about seven days a month. In terms of
market prospects, Guizhou Province is an underdeveloped area, and the demand for cement is mainly driven by infrastructure construction. However , in the past few years, Guizhou's large-scale advanced infrastructure investment and excessive consumption of regional infrastructure investment potential not only led to huge local debt pressure, but also overdrawn the future demand for cement. According to the data, among the 12 high-risk debt provinces announced in 2023, Guizhou ranked first with 1.51 trillion yuan, which further restricted the investment in infrastructure in Guizhou.
In addition, Guizhou is also facing problems such as limited logistics radius due to complex terrain, high export costs, numerous large enterprises, chaotic market competition, and difficult coordination.
However, it should be pointed out that the three 4500t/d production lines shut down by Guizhou Conch Cement come from three factories, and the three factories have more than one production line. Specifically, Guiyang Conch has three 4500 t/d clinker production lines, while Guiding Conch and Tongren Conch have two 4500 t/d production lines, and the shutdown of one in each factory will not affect the overall layout and sales of Conch Cement in Guizhou.
As we all know, Anhui is the headquarters of Conch Cement and the core of its "T-shaped strategy", which brings multi-dimensional competitive advantages to Conch. Without the clinker production line along the Yangtze River, there would be no "T-shaped strategy" of conch, and there would be no conch cement today. The horizontal of
"T" represents the coast and the vertical represents the riverside. T-shaped strategy refers to the construction of large and medium-sized clinker bases in places with abundant limestone resources along the Yangtze River, the construction of grinding stations in coastal areas with scarce resources but large cement market, the local production of cement, and the direct sale of the eastern market with strong demand. The mode of "clinker base-Yangtze River-grinding station (core consumer market)" has been formed .
The "T-shaped strategy" mainly solves three core problems. Namely: market, cost, inventory , and these three points are related to the survival of cement enterprises. Thanks to the "T-shaped strategy", Conch Cement has almost turned the whole Yangtze River Delta and the eastern coast into its own "territory" , and the Yangtze River Delta and the eastern coast are also one of the regions that contribute the most to Conch's profits.
Conch Cement has 14 billion tons of high-quality and relatively cheap limestone deposits along the Yangtze River in Anhui Province. The self-sufficiency rate of limestone is more than 95%, which is enough for 50-80 years, and the mining cost is 40% lower than that of other companies. At the same time, most of the clinker production lines along the Yangtze River have large scale, high level of automation and intelligence. In addition, the advantages of scale, low fixed costs, efficient management, perfect coal procurement system and logistics system make Conch Cement production line along the Yangtze River have great cost advantages .
Of course, the more important thing is the market . The Yangtze River Delta is one of the most economically developed regions in China, and the demand for cement is relatively strong. According to the cement output of each province in the first half of the year, Jiangsu, Zhejiang and Anhui all ranked in the top five. In the whole year, Jiangsu ranked second, Anhui third and Zhejiang fourth in the cement output of all provinces and cities in 2024. Since 2022, Jiangsu, Zhejiang and Anhui provinces have collectively ranked the top five in cement production for three consecutive years.
Relying on the convenient transportation conditions of the Yangtze River, Anhui clinker and cement along the Yangtze River can cover 80% of the Yangtze River Delta market (Shanghai, Jiangsu, Zhejiang), and can be sold to Fujian and other markets along the coast. Data show that more than 50 million tons of cement are exported from Anhui to the Yangtze River Delta and coastal markets every year, most of which come from conch cement .
Reducing Guizhou's production capacity and strengthening the layout along the Yangtze River will help Conch Cement give full play to its advantages and enhance its competitiveness.
At present, the cement industry is facing the double test of energy saving, environmental protection and industrial intelligence upgrading. In order to implement the relevant policy requirements and accelerate the green low-carbon transformation and high-quality development of the cement industry, China Cement Network is scheduled for September 23-24. The 14th China Cement Energy Conservation and Environmental Protection Technology Exchange Conference and the 6th Intelligent Summit Forum were held in Zibo, Shandong Province. This conference will bring together industry experts, enterprise representatives and many industry stakeholders to gather group wisdom and promote energy-saving, environmental protection and intelligent transformation and upgrading of the cement industry.
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