Cement industry is doing well under the environment of expanding domestic demand

In the context of the financial crisis, the investment-driven demand policy implemented by the Central Committee and the State Council has maintained stable economic development and created very good opportunities for the cement market demand, so last year's cement production has maintained a double-digit high-speed growth. Moreover, 176 new lines were completed and put into operation in 2009, and investment exceeded the historical threshold of 100 billion yuan, which is closely related to investment-driven demand.

Clarification of regional market pattern

Through competition and joint restructuring, the domestic cement regional market pattern in 2009 has become more and more clear. For example, the Northeast market is dominated by Yatai cement, followed by landscape, Tianrui and North cement of China building materials; Northwest China is dominated by middle cement and Qingsonghua is dominated by Southern Xinjiang; Jinyu cement radiates from Beijing to Hebei and Tianjin, and extends south of Beijing-Guangzhou line; East Hebei cement is dominated by Hebei, consolidating the status of Beijing, Tianjin and Tang Dynasty, and increasing investment in Shaanxi and Shanxi; Southern cement is dominated by Zhejiang. Centered on extending the South Bank of the Yangtze River to the west, the Guangdong and Guangdong markets are dominated by Huarun, Taimu and conch; Huaxin cement keeps the Central China market and controls the Tibetan plateau; Lafakiruian cement in the southwest market continues to cultivate deeply; Shandong market has been controlled by Shandong Landscape and Zhonglian; Conch Cement dominates the markets of Anhui, Shanghai and Jiangsu; Tianrui, Tongli and Zhonglian cement cover the Henan market; ...

Last year, the increase of the profit scale of the whole industry is not only related to the market, but also to the coordinating role of large enterprises in the regional cement market. Certainly, the cement (building materials) associations of provinces, municipalities and autonomous regions provide a very good communication platform for the cooperation of large and medium-sized enterprises in the regional market. After the stability of regional market structure such as Guangdong, Zhejiang, Chongqing, Beijing and so on, the competition order has been established accordingly. Large enterprises can sit down and study this market well, and work together to make enterprises and industries benefit. Zhejiang cement market has been depressed for many years. With the help of Zhejiang Cement Association, Nanfang Cement, Conch Cement and Red Lion Cement established a communication platform between them in 2009. Through the necessary means of limiting production and guaranteeing prices, everyone has achieved their due benefits in 2009.

Structural adjustment has entered a higher level

In terms of industrial restructuring, in addition to the proportion of new dry cement exceeding 70% and the completion of the 11th Five-Year Plan ahead of schedule, the joint restructuring of our large enterprises is also constantly advancing, with many notable cases. In 2008, China's building materials made great efforts to set up southern cement. In 2009, Zhongcao, Jidong, Jinyu, Yatai, Shanshui and Taimu all made significant moves in mergers and acquisitions. In the past, only a few enterprises have made mergers and acquisitions, but now large enterprise groups have begun to do so. This will help to promote the restructuring of the industry, which mainly focuses on reorganization and combination.

Widening Ways of Energy Conservation and Emission Reduction

Energy saving and emission reduction are directly linked with the elimination of backwardness. The backward production enterprises mainly have serious pollution, low resource utilization and low labor productivity. Eliminating backward cement production capacity is the biggest energy saving and emission reduction, which other countries can not do. In 2009, energy saving and emission reduction technologies such as low-temperature waste heat power generation, grinding energy saving, high-voltage frequency conversion, cement grinding aids, waste residue utilization, electronic monitoring and management, etc. continue to be widely used in new dry-process cement enterprises. This not only reduces energy consumption, improves environmental protection, saves production costs, but also increases the competitiveness of enterprises in the market.

In 2009, some cement enterprises also made more pilot projects and promoted the use of cement kilns to dispose of sludge, municipal refuse and hazardous wastes. Large enterprises such as Tongling Conch Cement, Yuebao Cement in Guangdong, Jinyu Cement in Beijing, Ulan Cement in Inner Mongolia, Yatai in Jilin, Lafaji in Chongqing and Huaxin Cement have launched many pilot production lines. These are the efforts made by our entire industry in energy saving and emission reduction and circular economy.

Enhancement of Internationalization Level

The internationalization of large enterprises does not mean selling cement abroad or undertaking international cement projects. It means that our large enterprises take the initiative to participate in foreign investment and extensive exchanges among international counterparts. In 2009, China Cement Association held a "C12+3 Round Table Meeting for Leaders of China Cement Enterprises" in Dujiangyan, Sichuan Province, and signed the "Declaration on Sustainable Development of China Cement Industry". At the end of 2009, three large enterprises, China Building Material, China Cement and Tianrui Cement, joined the World Water Swimming Sustainable Development Initiative (CSI) and the China Cement Association has become a partner of the organization.This means that with the voice of our Chinese cement enterprises in the International Cement Organization, we will have the opportunity to participate in the formulation of international cement competition rules in the future and to communicate more conveniently with international cement counterparts.

For example, at the end of 2009 at the Copenhagen Global Climate Conference, the global road map for cement industry emission reduction before 2050 was jointly issued by the Sustainable Development Initiative for Cement (CSI) of the World Business Council for Sustainable Development (WBCSD) and the International Energy Agency (IEA). The International Energy Agency (IEA) and CSI worked together for 12 months to finalize the first emission reduction technology roadmap covering the entire cement industry.

As the world's first industrial emission reduction roadmap, it sets the ambitious goal of reducing carbon dioxide emissions in the cement industry by 2050. Unfortunately, this roadmap was not developed with the participation of Chinese cement professionals. I think that China's cement industry will play its role in safeguarding the interests of China's cement industry in the future with the revision of this action road map.

With the support of the APP Cement Working Group of the Chinese Government (Asia-Pacific Cleaner Production and Atmospheric Cooperation Organization), the National Development and Reform Commission and China Cement Association have held four international training seminars on energy conservation, emission reduction and clean development of China's cement industry for three consecutive years. World cement experts have been invited to China to teach international popular statistical methods and tools for data statistics of the cement industry. More than 160 technicians have been trained in the domestic cement enterprise.

With the adjustment of industry structure and the establishment of regional market, it is an inevitable trend for large enterprises to invest in cement projects abroad in the future. The construction and reserve of internationalized talents of large enterprises should also be included in the focus of strategic development of enterprises.

Healthy development of policy escort industry

In recent years, from the aspect of national policy, the healthy development of our cement industry has been guaranteed. In view of the situation that the investment of cement industry is too fast in the short term in 2008 and 09, and the production capacity growth is too large; in order to restrain the overcapacity that may occur in the future, as well as to guarantee and implement the target of eliminating the production capacity, the General Office of the State Council issued document 38, which braked the cement investment. At the same time, the formulation of access conditions for the cement industry and the revision of the development policy for the cement industry during the 12th Five-Year Plan period in the future are also carried out, which show that the state is still concerned about the development of the cement industry in terms of policy, and provide guarantee for the healthy development of the cement industry in the future.

In looking forward to the development of cement industry in 2010, Secretary-General Kong said that although the development of cement industry has maintained a good level in the past year, there are still several key issues to be solved in the new year.

1. Implementation of State Council Document No. 38 in 2010. This year, it is very necessary to clean up the previous projects, so as to ensure that the future layout of the industry's production capacity is reasonable. For those projects which are not qualified, they should stop, and they should not be allowed to unlawfully approve projects or resell project approvals; but for those projects with the funds in place, the projects with the formalities and certificates should still go up.

2. Eliminating backwardness is still arduous. At present, there are 3,430 vertical kilns, nearly 400 million tons of cement production capacity, 30 wet kilns and 398 hollow kilns to be eliminated; in addition, there are backward grinding capacity to be cleaned up, mainly grinding stations under 400,000 tons, which will involve more than 200 million tons of cement backward grinding capacity. Eliminating backward production capacity involves the re-employment of about 500,000 people. How to establish a reasonable mechanism for the withdrawal of backward production capacity and properly resettle the re-employment of the eliminated enterprise personnel is not only an economic issue, but also a political stability issue. It is necessary to increase the economic compensation for the eliminated enterprises.

China's cement production accounts for 50% of the world's cement production, and the CO2 emissions from cement production account for 50% of the world's cement emissions.

Therefore, the elimination of backward cement production capacity and energy saving and emission reduction work are not only related to industrial upgrading and structural adjustment, but also related to the successful completion of the implementation of emission reduction commitments made by our government to the international community at the Copenhagen Conference. Reducing the intensity of carbon dioxide emission will bring a "revolution" to the structural transformation and growth mode transformation of China's cement industry once it becomes the industrial quantitative standard and compulsory target.

In the near future, the State Council may hold a meeting to require provinces and cities to implement the target of eliminating backward production capacity. I personally suggest that it is necessary for the government to continue to give appropriate financial subsidies for eliminating backward production capacity, and even to raise the subsidy standards, especially for the less developed areas, the central government should give preferential subsidies.

Third, we should continue to do a good job of energy conservation and emission reduction around the development requirements of the low-carbon economy. It should be said that the cement industry in various industries to eliminate backward, energy saving and emission reduction work is still relatively good.

Therefore, the elimination of backward cement production capacity and energy saving and emission reduction work are not only related to industrial upgrading and structural adjustment, but also related to the successful completion of the implementation of emission reduction commitments made by our government to the international community at the Copenhagen Conference. Reducing the intensity of carbon dioxide emission will bring a "revolution" to the structural transformation and growth mode transformation of China's cement industry once it becomes the industrial quantitative standard and compulsory target.

In the near future, the State Council may hold a meeting to require provinces and cities to implement the target of eliminating backward production capacity. I personally suggest that it is necessary for the government to continue to give appropriate financial subsidies for eliminating backward production capacity, and even to raise the subsidy standards, especially for the less developed areas, the central government should give preferential subsidies.

Third, we should continue to do a good job of energy conservation and emission reduction around the development requirements of the low-carbon economy. It should be said that the cement industry in various industries to eliminate backward, energy saving and emission reduction work is still relatively good.