Cement Net comments: Many projects have been put into production! Conch Cement takes the lead in promoting the new mode of making money for cement enterprises!

On August 28, Shuangfeng Conch and Xiangtan Xiyuan Commercial Concrete Processing Project were put into operation smoothly. According to incomplete statistics, this is at least the seventh commercial concrete processing project of Conch Cement since December last year. Prior to this, the commercial concrete commissioned processing projects of Qingxin Company, Shimen Conch, Zhangjiagang Conch, Tongchuan Conch New Materials, Ganzhou Conch and other enterprises have been put into intensive production. Conch Cement, which is the best at accounting in the

cement industry, has released a clear signal that it is giving up "buying stations" and turning to "borrowing stations". In the

past, when cement enterprises extended to downstream commercial concrete, their usual practice was to directly acquire or build mixing stations-to build new/buy assets, expand the scale, and physically own production capacity. Conch itself has been a major force on this road, but this road is rapidly failing.

The fundamental reason is that the industry logic has changed. Both cement and concrete have entered the demand platform period, with serious overcapacity, and the incremental market has disappeared. In the era of increment, it is the primary task to grab resources and buy mixing stations; in the stage of stock game, the purchased mixing stations become a burden instead-large amount of capital precipitation, poor liquidity of assets, once the market goes down, depreciation and maintenance costs are overwhelming .

Xinjian is also impassable. The threshold of environmental protection compliance is getting higher and higher year by year, and the approval of concrete mixing stations is becoming more and more difficult. From site selection, construction to production, the cycle is long and there are many links. When a new station is built, the market window may be closed long ago.

As a result, "generation processing" has become a more rational choice: do not carry heavy assets, use and retreat, flexible funds, but also directly use the existing compliance capacity to quickly enter the market. In the "15th Five-Year Plan", Conch Cement has written "deepening the extension of the industrial chain, promoting aggregates, commercial mixing and consumer building materials" into its strategy, and the first knife to land is the acquisition of heavy assets. The essence of

commercial concrete commissioned processing is to treat the mixing station as a "substitute factory" and itself as a "chain owner". The division of labor among the three parties is so clear that it is almost cold.

Cement enterprises are responsible for: upstream raw materials-cement, aggregate, crushed stone, machine-made sand, fly ash, admixture-are directly supplied at cost price, and the price and quality are controlled by themselves; downstream markets-channel, brand, pricing, and payment collection-are firmly grasped. Mixing station only do one thing: out of the site, equipment, personnel, the material processing into concrete, earn a processing fee. Terminal customers still get "conch brand" commercial concrete.

In other words, heavy assets are outsourced, and the value-added part-the price difference, channel and brand premium from cement to commercial concrete-remains in the hands of cement enterprises.

From "producer" to "chain owner", it is the reconstruction

of identity. If we only understand the generation processing as a money-saving business, we underestimate the weight of this matter. What it really points to is a reconstruction of the identity of the cement giant.

In the past, conches were "producers"-owning mines, production lines and mixing stations, and relying on the scale of assets to speak. Now, they are becoming "chain owners"-not pursuing the expansion of ownership, but integrating industrial chain resources, controlling other people's production capacity, and finding stable exports for their own cement and aggregates. This is an upgrade of thinking from "owning resources" to "dominating resources", and it is also a typical turn of light assets. Behind

this, there is also the industry's "anti-involution" and green transformation. With limited new construction and excess stock, whoever can revitalize the existing production capacity with the lightest stature will be able to live more calmly in the period of deep adjustment. Digital capability has become a new battlefield-decentralized generation processing points to ensure quality control and efficiency, relying on digital management means, which is also the focus of the next competition.

Outsourcing production mode is similar to that of foreign cement giants, which are generally involved in and deeply cultivated in downstream cement industries such as concrete. The difference is that foreign cement building materials giants mostly use acquisition or self-built mixing stations to promote concrete business, while Conch is now leading the outsourcing mode. Promote commercial mixing business with lighter asset burden, which not only avoids the burden of heavy asset investment, but also makes use of the original channels and mature production technology and equipment of the cooperative mixing station.

From "buying the mixing station" to "entrusting the mixing station", the difference of one word is the turning point of the cement industry from heavy assets to light assets to integrate resources. When the giants are no longer obsessed with "ownership" and learn to "dominate", a more cruel and efficient stock era has just begun.