of June 2, Ningbo Fidelity's announcement aroused industry concern: Xinping Yingzhou Cement Co., Ltd., a holding subsidiary, intends to publicly list and transfer the capacity index of a 2000t/ d clinker production line. The base price is not less than 43.8 million yuan. After the transfer is completed, the main equipment such as rotary kiln will be dismantled according to law.
In fact, Ningbo Fidelity's operation of shutting down and transferring production capacity is not an example, but a true epitome of the current domestic cement industry's accelerated liquidation and deep structural adjustment.
As for the withdrawal of production capacity, Ningbo Fidelity said frankly in the announcement that in recent years, Xinping Company continued to lose money due to factors such as declining demand in the cement industry, intensified competition and stricter national environmental protection and consumption reduction policies. Although in 2025, Xinping Company will continue to face greater market uncertainty and large investment pressure in environmental protection in the future, taking into account the changes in market and policy environment since this year, by expanding sales, reducing costs and increasing efficiency. Behind
this is the bleak reality of the whole industry. Data show that China's cement output has been declining for many years. In 2025, the national cement output was 1.693 billion tons, down 6.9% from the same period last year, and the output dropped to the lowest level since 2010. Industry profits plunged from a peak of 186.7 billion yuan to 26 billion yuan in 2025, shrinking by 86%. In 2026, the total loss of 18 cement listed companies in the first quarter exceeded 1.4 billion yuan.
When loss becomes the norm, exit becomes a rational choice. According to the data of China Cement Network, only in 2025, through capacity replacement or supplementary capacity, the cement industry has achieved more than 160 million tons of clinker production capacity, or withdrawn as supplementary capacity, or as capacity replacement projects. In part of the withdrawal of production capacity, the reduction supplement or reduction replacement mode is implemented, and the reduction part realizes the actual withdrawal of production capacity. In the first quarter
of 2026, the industry further reduced and withdrew nearly 30 million tons of production capacity. Zhang Yunming, vice minister of the Ministry of Industry and Information Technology, summed this up as "active slimming". Some provinces such as
Shandong have withdrawn from clinker production lines of 2500t/d and below, and the nationwide clearance of inefficient production capacity is shifting from "I want to retreat" to "I want to retreat", and the willingness of enterprises to take the initiative to clear inefficient production capacity has increased significantly. The case of
Ningbo Fidelity sends a clear signal: even if it has been effective in reducing costs and increasing efficiency, if the production line itself does not have long-term competitiveness, a decisive exit is the optimal solution.
It is noteworthy that the enterprise did not shut down the production system completely, but retained the grinding system and transformed the cement grinding station, which also reflects that the industry enterprises actively explore the transformation ideas of differentiated survival and refined operation in the process of capacity clearance.
When the peak of demand becomes a consensus and the threshold of environmental protection continues to rise, the elimination competition in the cement industry will not stop at individual enterprises. Industry analysis points out that whether the profits of the cement industry can be restored in 2026 depends on whether the industry can unify the consensus of reducing development and the mechanism of normal capacity clearance.
For companies still at the poker table, survival is only the first step-living well requires a deeper moat.
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