As an important means for the cement industry in Inner Mongolia Autonomous Region to reduce production capacity, Inner Mongolia Cement Group, which has been preparing for a long time, held a grand unveiling ceremony in Xincheng Hotel, Hohhot City, on August 28, marking the official listing and operation of the group.
Qiao Longde, President of China Building Material Federation and China Cement Association; Zhang Zhanjun, Deputy Director of the Economic and Information Commission of the Autonomous Region; Bi Guochen, Vice Mayor of the People's Government of Hohhot; Liu Zhaojiang, Member of the Standing Committee of the People's Government of Yuquan District, Hohhot; Xu Defu, Head of the Leading Group for Capacity Reduction in Northeast China and President of Jilin Building Material Association; Liu Ailin, Chairman and President of Mengxi Group; Sun Jiancheng, General Manager of China United Cement Group Co., Ltd.; Yin Zibo, Chairman of Ningxia Building Materials Group; Zhang Chuanjun, President of North Cement Co., Ltd.; Ma Wenyi, Chairman of Inner Mongolia Wanchen Energy Co., Ltd.; Zhai Huaiyu, Chairman of Jilin Cement Association and Vice President of Jilin Yatai Group; Zhao Hongbo, Chairman of Liaoning Cement Association, Vice General Manager of Shanshui Group and General Manager of Northeast Operating Zone; Shi Yantian, Secretary-General of Heilongjiang Cement Association, Gao Wenhuan, Chairman of Mengxi Cement Group, Liu Pengfei, Chairman of Inner Mongolia Cement Association and Chairman of Inner Mongolia Cement Group, Xu Xianggui, President of Inner Mongolia Cement Group and other leaders attended the meeting.
Qiao Longde, President of China Building Materials Federation and China Cement Association
Zhang Zhanjun, Deputy Director of the Economic and Information Commission of Inner Mongolia Autonomous Region
Liu Pengfei, Chairman of Inner Mongolia Cement Association and Chairman of Inner Mongolia Cement Group
Also present at the unveiling ceremony were the relevant leaders of the Economic and Information Commission of the Autonomous Region and the Hohhot Municipal Government, the relevant responsible persons of the financial institutions of the Autonomous Region, the representatives of the shareholder enterprises of Inner Mongolia Cement Group, the chairmen and general managers of the regional companies of Inner Mongolia Cement Group, the responsible persons of the relevant enterprises, and the news media China Cement Network, as the core media in the industry, participated in the coverage of the conference.
Gao Yongfu, General Manager of Hulunbuir Mengbei Cement Co., Ltd., Regional Company Representative
The establishment of Inner Mongolia Cement Group is a strategic measure taken by the Autonomous Region Government to implement the Guiding Opinions of the General Office of the State Council on Promoting the Steady Growth of Building Materials Industry, Adjusting Structure and Increasing Benefits (Guoban Fa [2016] 34), aiming at optimizing the structure and layout of the supply side and reducing excess capacity by integrating property rights and management rights. Standardize enterprise market behavior and promote the orderly development of cement industry.
Sun Jiancheng, General Manager of China United Cement Corporation
It is reported that the existing cement production capacity in Inner Mongolia is 120 million tons, but the actual output began to decline year by year after reaching a peak of 65 million tons in 2011, falling to 30.45 million tons in 2017, the utilization rate of production capacity is only 25.37%, and the cement production capacity is seriously excessive. At the same time, in order to seize the market, the enterprises in the industry dumped at low prices and cut each other's flesh. Inner Mongolia has become the region with the most fierce competition, the lowest price and the worst efficiency in the national cement industry, which has seriously affected and hindered the healthy and sustainable development of the cement industry in Inner Mongolia.
In order to curb the chaos in the operation of the cement industry in Inner Mongolia and promote the sound development of the cement industry, on August 30, 2016, the General Office of the People's Government of Inner Mongolia Autonomous Region issued the Circular on Transmitting the Guiding Opinions of the General Office of the State Council on Promoting the Steady Growth of the Building Materials Industry, Adjusting the Structure and Increasing the Benefits (No.114 issued by the Ministry of Internal Affairs). The strategic measures of "supporting the joint reorganization of superior enterprises, focusing on promoting the establishment of large cement group companies in the autonomous region led by Mengxi Cement Co., Ltd. and building a platform for capacity integration" were put forward.
After the issuance of the document, Mengxi Cement Co., Ltd. earnestly shouldered the responsibility of the leading unit, actively coordinated the major cement enterprises in the region to study and implement the decision-making and deployment of the autonomous region, and formed a broad consensus. We all agreed that the establishment of Inner Mongolia Cement Group and the realization of centralized operation of the industry are the only correct choice to save the cement industry in Inner Mongolia, and there is no other way to do so, and expressed our active participation in the establishment of the group and its regional subsidiaries. After more than two years of hard and meticulous work, Inner Mongolia Cement Group obtained the business license issued by the Bureau of Industry and Commerce of the Autonomous Region on August 10, 2018, marking the formal establishment of the Group. It is understood that Inner Mongolia Cement Group was set up by six enterprises, including Mengxi Cement, Liaoning Shanshuigongyuan Cement , Zhonglian Cement , Wuhai Horse Racing Cement , Northern Cement and Inner Mongolia Wanchen Energy. It is headquartered in Hohhot, the capital of the autonomous region. The Group has five regional subsidiaries, namely, Hulunbuir Mengbei Company, Xing'an League Jixing Company, Wuhai Mengning Company, Chifeng Heying Company and Chifeng Taiying Company, and will set up regional subsidiaries in Hohhot, Baotou, Tongliao, Wulanchabu, Xilingol and other cities in the future, eventually covering the whole region of Inner Mongolia.
According to the main person in charge of Inner Mongolia Cement Group, the group is essentially different from the sales platform or price alliance that has been established in China. All enterprises that join the group must: resolutely implement the company's articles of association, abide by the company's operating rules, obey the company's decisions to reduce production capacity and adjust the structure, safeguard the overall situation of the company, and adhere to mutual benefit and win-win situation. Shareholders of regional subsidiaries should bear the responsibility for breach of contract and impose heavy penalties on those who violate the contract wantonly. The Group Company holds more than 51% of the equity of the regional subsidiaries, and implements the parent-subsidiary management system with the regional subsidiaries. Major investment matters, major business matters, major management matters, major personnel appointment and removal matters, and important personnel rewards and punishments matters of the regional subsidiaries must be reported to the Group Company for approval. The person in charge also introduced that Inner Mongolia Cement Group will adhere to the concept of "honesty, tolerance, cooperation and win-win" in the follow-up operation and management process, adhere to the policy of "removing production capacity, adjusting structure and increasing benefits", and implement the operation mode of "group company grasping the total, regional company's main business and manufacturing enterprise's main production", in the group company. Establish a management mechanism of "efficient decision-making, consistent pace, clear rewards and punishments", form a sustainable operation ecosystem covering Inner Mongolia and radiating neighboring provinces and regions, guide and serve the sound development of the cement industry in Inner Mongolia Autonomous Region, and build Inner Mongolia Cement Group Company into a long-life enterprise with standardized management, legal operation and stable benefits.
The unveiling ceremony
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