Cement is a great cause, carrying the people's yearning for a better life, and laying a solid foundation for economic and social development. Over the past decades, China's cement industry has been developing continuously and making great progress, realizing the technological leap from shaft kiln to new dry process, completing the transformation from following to leading in the world, and becoming a basic industry with great international competitiveness in China. In the course of the vigorous development of the cement industry, a large number of dedicated outstanding figures have emerged, who have profoundly reshaped the development pattern of China's cement industry and injected strong impetus into the iterative upgrading of the industry. In the near future, China Cement Network will review the industry figures who have made outstanding contributions to China's cement industry from a third-party perspective.
Today, we bring Xiao Jiaxiang, former executive chairman of China Cement Association, former party secretary and President of Tianshan Stock Company.
for more than ten years is in Guizhou. In July 1982, at the age of 19, he entered Shuicheng Cement Plant, starting as a mine workshop engineer and working as a workshop director for nine years. This experience was rarely mentioned later, but it determined the background of all his judgments thereafter-he was familiar not only with the figures on the statements, but also with the specific things such as kilns, mills and mines. In July
1991, he transferred to Hubei Huaxin Cement (Group) Co., Ltd. and served as director of limestone mine, assistant general manager, director, deputy general manager and Standing Committee of the Party Committee for another ten years. Huaxin is the cradle of China's cement industry. In this century-old enterprise, Xiao Jiaxiang has completed the transformation from a technical cadre to a manager. In November
2001, there was a rare turning point in his life: he was transferred to the post of deputy secretary of the Daye Municipal Party Committee of Hubei Province, and then served as mayor, secretary of the Municipal Party Committee, and chairman of the Standing Committee of the Municipal People's Congress for nearly five years. It is rare in the industry for a senior executive of a cement enterprise to turn around and become a local chief officer. When he returned to the cement industry five years later, he was the president of Tianrui Group in February 2006 and the https://price.ccement.com/brandnewslist-1-1000162. of Tianrui Group for three years. It is his complete experience in private enterprises-flexible mechanism and short decision-making, which is totally different from the rhythm of state-owned enterprises and central enterprises. In February
2009, Xiao Jiaxiang joined China National Building Material Co., Ltd. as vice president and director of Southern Cement Co., Ltd. and became president of Southern Cement Co., Ltd. four months later. At this time, Southern Cement has been listed for only one and a half years, and he is faced with a world-class problem: how to truly integrate hundreds of cement enterprises with different ownership, different cultures, and different interest demands in the Southeast Economic Zone into a group. For this reason,
China Building Materials has designed the concept of "joint reorganization" to replace the traditional "merger and acquisition", bringing out "three plates of beef"-fair and reasonable pricing, leaving a certain share for private entrepreneurs, attracting entrepreneurs to become professional managers, and solving the three core problems of reorganization, namely, integration with the market, property rights and where people come from. Xiao Jiaxiang is the executor of this play. Within five years, Southern Cement has jointly reorganized more than 380 enterprises of different ownership, creating a cement group with the second largest cement production capacity and the first commercial mixed production capacity in the Southeast Economic Zone.
"Southern Cement has gone through many stages, such as joint reorganization, in-depth management integration, and continuous improvement of industry ecology, and each stage is not difficult." Xiao Jiaxiang once said so. The efficiency of
restructuring can be quantified. By the end of 2020, there were 246 legal entities affiliated to Southern Cement, with total assets of 90 billion yuan. Cement production capacity of 140 million tons, Commercial mixed production capacity 1.
Northeast and Inner Mongolia markets have long been the depressions of cement prices and benefits in China, with shrinking demand, excess capacity and enterprise losses intertwined. Whether the successful experience of southern cement can be replicated to the north, the industry was not optimistic at that time. In March 2019, Northern Cement held an annual working conference in Harbin. Xiao Jiaxiang was present to analyze the market situation and identified three key tasks, among which "the most important is marketing". He did not talk too much about reason, but only emphasized firm confidence and overcoming difficulties.
It should be noted that due to long-term losses, Northern Cement was not included in the integration scope of Tianshan Stock in 2022, but was entrusted by Tianshan Stock with an annual trusteeship fee of 500000 yuan plus 1% of net profit, and the profits and losses were still borne by China Building Materials. This arrangement itself shows how difficult this asset is. Xiao Jiaxiang served as chairman of Northern Cement until January 2023.
restructuring, the market value of New Tianshan Cement is about 120 billion yuan, with clinker production capacity of about 300 million tons, commercial concrete production capacity of about 400 million cubic meters and aggregate production capacity of about 1. From a regional Xinjiang enterprise, it has become a leading listed company in the national cement industry. At the annual working conference in January 2022, Xiao Jiaxiang made a work report entitled "Firming the goal and striving to build a world-class cement enterprise", and arranged five tasks, including deepening the three fine management, speeding up the optimization and upgrading, and doing a good job in business integration. But he also inherited a market with a downward cycle. In 2022, the new Tianshan cement realized business income of 132 billion 581 million yuan, a decrease of 22.03% over the same period last year; The net profit attributable to the parent company was RMB4.542 billion, representing a year-on-year decrease of 63.2023, which continued to decline. The operating income was RMB107.38 billion, representing a year-on-year decrease of 19.01%, and the net profit attributable to the parent company was RMB1.965 billion, representing a year-on-year decrease of 56. During the same period, due to the failure to meet the performance commitments, CNBM had to make a total of over RMB10 billion of share and cash compensation to Tianshan. This is the flip side of this round of consolidation: it is unprecedented in scale, but it has caught up with the long-term downward trend in demand. In this regard, Xiao Jiaxiang's answer on many occasions is "price, cost and profit"-insisting on price covering costs and maintaining reasonable profits. association, he talked most about off-peak production and industry self-discipline. In 2024, he repeatedly emphasized a point of view on many occasions that we should deeply understand that "the interests of enterprises are in the industry, and the interests of industries are higher than those of enterprises". In the current complex and severe market environment, it is impossible for any enterprise to stand alone. He attributed the industry dilemma to four relationships that need to be clarified: enterprise and industry, sales volume and share, price cost and profit, and local and overall situation.Regarding the latter two, his expression is quite impolite: "Cement is a homogeneous short-legged product, in the era of serious overcapacity, it is impossible to increase sales and efficiency by lowering prices.". Cement price growth must cover cost growth. "Speaking of the local and overall situation, he took Guizhou as an example-in the past two or three years, Guizhou did not stop kilns and supported Guangxi and Guangdong across provinces, resulting in" a mess of its own and a mess of the whole country ". He also talks about tenacity. At the 14th China Cement Industry Summit, he proposed that the industry should identify two major objectives and tasks to get out of the predicament: one is to strengthen industry self-discipline, adhere to off-peak production, and stabilize growth by anti-involution; the other is to deepen supply-side structural reform, reduce production capacity, and improve capacity concentration. He also suggested that policy and market should be used to drive capacity, including the cancellation of capacity replacement in other places. In May 2025, he ceased to be the executive chairman of China Cement Association. Four months earlier, on January 16, 2025, CNBM received his resignation as a non-executive director of the company due to retirement. This is the end of a career of more than 40 years. Four fields, a rare sample from the workshop director of Guizhou Shuicheng Cement Plant to the deputy general manager of Huaxin Cement, from the Secretary of Daye Municipal Committee to the operators of Southern Cement, Northern Cement and New Tianshan. The resume of Xiao Jiaxiang, the executive chairman of China Cement Association, spans four fields of technology, management, local governance and industry organization, which can hardly find a second sample in China's cement industry. He participated in and led the joint reorganization, which brought the concentration of China's cement industry from 15% to 64%; he took over the 100 billion-level integration, which put 300 million tons of clinker production capacity into a listed company. These achievements later encountered the most difficult downward cycle in the industry, and the achievements and pressures were equally heavy. But once the organizational structure is adjusted, it will not go back-which may be the most tangible thing he left to the industry.
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