China's cement industry, subject to adjustments

China's cement industry, subject to adjustmentscountries have been regarded as a sunset
1, the industry outside of China's cementindustry, but in Asia, Africa, Middle East and other
enterprises to go abroad a loud voicedeveloping regions, as carried out large-scale
In recent years, China's cement industry for theinfrastructure projects underway in full swing,
rapid development of domestic productioncement demand is increasing, with great market
capacity could lead to a surplus situation, at allpotential. Others, such as "contrarian Lafarge
levels within and outside the industry have beencement business expansion in Africa", "Spanish
discussing with the call for the domesticcompanies investing in building a cement plant in
large-scale cement enterprises to go abroad, toBosnia and Herzegovina", "Iran will build cement
foreign investment.factory direct foreign" This message is also not
China Cement Association, according to theuncommon. Reflects one aspect of the overseas
statement the Secretary-General KONGmarket because of strong demand for cement,
Xiang-Zhong, China's cement enterprises go outthe new project and a lot of cement. Just think,
consists of three levels: Firstly, the cementeven the annual output of cement, like Iran, but
exports, and second, cement technology andmore than 3000 million tons, needs to invest and
equipment companies go global, three cementbuild factories in foreign countries can be said that
manufacturing companies invest and build factoriesChina's cement companies invest and establish
overseas. In these three dimensions, China'sfactories in foreign countries do not have the
cement products to enter the internationalcondition?
market, the earliest cement export peaked inThird, China's cement enterprises are unwilling to
1996, when exports of 12 million tons of cement."go out" of the subjective and objective factors
Followed up the fluctuation experienced ups andI have heard a number of large-scale business
downs, but compared to our more than 50% ofowners to "go global" view, in addition to the
the world in terms of cement production, cementaforementioned "easy", "far from being simple",
ratio of exports has been low.the specific point of view there are so few: 1, in
The cement technology and equipment companiesAsia, non-state, the Middle East Cement demand
go out the results of the most significant, in whichis larger and its inadequate capacity of countries
they stressed, is Sinoma International, since 2003,and regions, although the demand for cement, the
just a few years, and its cement production linemarket good, but there is market demand,
overseas construction general contractingproblems of instability, a larger market variables.
projects, has spread to the Middle East, North2, Lafarge of France, Italy, cement, Rui Shihao
Africa, Southeast Asia's 10 countries, accountingSimon, Mexico, cement, cement, Heidelberg,
for the world's cement production line for 35% ofGermany and other world top 10, after a
construction projects has become anlong-term development, have formed their own
internationally renowned company.pattern of the world market, want to go the
As early as in April 13, 2006, the Nationalsphere of influence of these international giants
Development and Reform Commission jointlyfinger in the pie too difficult. 3, invest and establish
issued by eight ministries and commissions offactories in foreign countries, but also take into
"structural adjustment of cement industry toaccount issues such as the local currency
accelerate the issuance of a number of informedexchange rate, while in some developing countries,
opinion", the put "out of the cement companies tothe exchange rate is not stable, this is also a need
participate in international competition in theto confront and solve difficult problems. 4,
market" as a the views of the structuralChinese enterprises to invest overseas, there is a
adjustment of cement industry is one thatlocal culture, laws, policies, etc. docking problem,
state-sponsored cement companies to thebut the domestic situation in some developing
international cement market niche.countries are also more complex and therefore
China Cement Association, to encourage theinvestment is risky. 5, some countries fear of
original cement products are exported toChina's cement and resistance.
international markets, there is the long-termThese reasons, although it sounds somewhat
consideration. On the one hand, if domesticreasonable, but always felt that reveals a certain
market prices fall, profit margins narrowreluctance. To Conch, for example, has a
circumstances, companies could export to obtainproduction capacity according to the number of
better returns from the international market.conch enough to be among the best in the world's
What is more important is that in China's cementcement giant, management has also been close to
exports to international markets in the process,international advanced level, and has strong
the domestic cement companies have a bettereconomic strength and strong financing capability,
understanding of the local cement market supplythe domestic bank loans to its credit the hundreds
and demand changes, product standards, marketof billions of dollars of new investment every
layout, in order to pave the way for the future,year to build a large-scale production line will be up
go invest and build factories and preparation.to a dozen. Then as a conch strength,
Some experts believe that the current domesticmanagement, technology, to some developing
market competition is increasingly fierce, but stillcountries to invest and build factories, some of
large room for development. But in the long run,these problems should not be obstacles, should be
market saturation, overcapacity is a matter ofeasy to solve. But today, the author the
time before, in this situation, China's cement,impression, as if still no Conch Cement in the
especially large enterprises, it should be braveoverseas investment project information appears.
"going out" to foreign direct investment inDomestic cement production capacity in the next
factories, the establishment of a local marketfew levels there are more than 10 million tons, to
network participate in international competition inthe present, it seems, were not going to invest
the international market to seek its own share. Ifand build factories overseas, meaning.
you are bent on biting the local market and hold,But at the same stone for the building materials
maintain Woli Dou, playing the same pattern ofindustry, the domestic enterprises, in recent
civil war, it is difficult to improve theyears, "going out" strategy will be very successful.
comprehensive competitiveness of enterprises.Fujian and Guangdong enterprises on behalf of a
  China's new dry-process cement technologygroup of stone enterprises to seize the
and equipment, from the introduction to theiropportunity to form joint ventures or
design and manufacturing, development andwholly-owned enterprises in Australia, Egypt,
mature is a startling rate, we mastered theSpain, Tanzania, Kenya, the United States and
production technology and equipmentother countries to build sales outlets or processing
manufacturing capacity, has now reached thepoint, the use of foreign resources and markets,
world advanced level, in order to provide acombined with domestic stone enterprise has the
cement companies go global strong technicaltechnical and managerial aspects of the
assurance. At the same time, China's part of thecomparative advantages of local materials
large-scale cement enterprises in production yields,processing and marketing, market prospects are
management and financial strength, is entirelyextremely good.
possible with some of the world's leading largeConditions are ripe, but why China's cement
enterprises comparable. Therefore, regardless ofmanufacturers will invest directly abroad, for
technology, equipment, management, ormany years, but almost no progress?
enterprise strength go out of condition should beThe author believes that the main reason for the
fully available.domestic cement market is still very good, leading
One obvious fact is that China's productionenterprises lack the awareness and motivation to
capacity of some large enterprises is not lowgo out.
when compared with international multinationalAs everyone knows, China's rapid economic
corporations, if only by production basis, to enterdevelopment has long been dominated by the
the world's top 10 cement companies with strongcapital to pull the. The response to the
non-ending one. But today, still no one in China'sinternational financial crisis, but also to expand the
cement enterprises to enter the world top 10, theinfrastructure-oriented. The 1998 Asian economic
direct reason is because not enough of thecrisis, countries in order to stimulate domestic
"offshore Cement Cement Group operatingdemand, mainly road construction in 2008 of the
income accounted for over 20% of totalglobal financial crisis, the central and timely
operating revenues" and "two or more in foreignintroduction of 4 trillion of investment plans, the
direct investment in manufacturing enterprisessuccess of resolving the crisis on China's economic
"It's two from the European Cement Boarddevelopment. China's large-scale infrastructure
(fCembu-reau) released a hard standard. China'sconstruction has been going on for decades, a
such a big country in terms of cement say that itlarge number of new construction projects, the
is a big regret.emergence of steady flow, the cement demand
Second, China's cement enterprises "going out"growth has been out of state, for the cement
analysis of the objective conditions forindustry's rapid development has laid a solid
Data show that the world's cement consumptionfoundation, but also so that the days of China's
in 2001 soared to 1.64 billion tons in 2005 to 2.3cement enterprises has been quite better.
billion tons, an increase of 40%, with Asia and theBe able to invest in cement projects abroad, the
Pacific region is an important source of growth ofonly large enterprises. These companies in the
the world's cement. At that time the cementcountry, whether in industry or in the market,
importing countries mainly the United States,have adequate visibility and voice, strong and
Bangladesh, Nigeria, Egypt, Middle East and othercompetitive. The difference is that with small and
countries and regions. Which the United Statesmedium enterprises, regardless of how the
20% of the total demand from imports.excess of domestic production, competition, how
According to authoritative estimates, the sixintense, they are not particularly worried about
countries in 2006 Gulf demand for 50 million tonstheir market share in competition with small and
of cement; Algeria 15 state-owned cementmedium enterprises, and their advantages are
companies produce cement less than 800 millionclear. Therefore, these big companies worry
tons, while the market demand of 1000 millionabout no food in the country.
tons. Vietnam's cement demand in 2005 is aboutIn addition, China's cement industry development
28.4 million tons is expected by 2010, demand willto the current level of industrial structure
reach nearly 50 million tons in 2020 will reach 7000adjustment is inevitable restructuring of mergers
million tons.within the industry is certainly a major issue. The
Data show that in the 21st century, not China'supcoming wave of restructuring is to expand the
cement output growth, the world's cementsize of these large companies an excellent
production average annual growth rate of 3.5%,opportunity. Large Cement Group at this stage
and the pace of world economic developmentthrough reorganization of the joint, the
fundamental synchronization. Appeared in theinvestment to complete the expansion of the
United Arab West, Saudi Arabia, Iran, Yemen,regional division of the domestic market.
Jordan, Vietnam, India, Pakistan, Nigeria, Ghana,Therefore, rather than take risks to invest
Algeria, Morocco, South Africa, Spain, rapidabroad, it is far better in the country through the
increase in cement consumption countries.construction of new lines, and mergers and
Cement consumption in the Gulf region in recentacquisitions to expand influence. There is a person
years, an average annual growth rate of 13%.in charge of large enterprises that do not grasp
Continued until today, Thailand, Laos, Vietnam andthe opportunities of domestic finished realistically,
other ASEAN country's infrastructure and civilianhow can mind, taking into account foreign
housing boom has emerged a new one, and itsinvestment. These words should have a fairly
building materials are mostly imported. And theuniversal.
next few years, the ASEAN region in theMoreover, up to now, although there is the threat
rehabilitation of infrastructure, the hotel industry,of excess capacity exists, but the domestic
construction and reconstruction of civilian housingcement market, the overall trend is to the good,
will set a rare scale. Tropical storm hit Myanmarthe price continued to rise slightly. It is estimated
after the attack, nearly one billion U.S. dollarsthat the next two to three years, the industry is
needed reconstruction funds, another has startedunlikely the deteriorating situation in large
by building part of the Trans-Asian Railway line iscompanies will not be too sad day.
also started fund-raising, which are suppliers forObjectively speaking, China's large-scale cement
the cement has brought great businessenterprises to go abroad to developing countries
opportunities.by building projects, conditions are ripe, there is no
I looked at the overseas market this year andinsurmountable obstacle. That he could not go out,
found that words such as "shortage of cement indue largely to themselves, the lack of motivation
southern Vietnam, the local cement market hasto go out, consciousness and determination. At
more than 1,200 million tons of gap.", "India in Aprilpresent day the industry is also tolerable, but in
added eight million tons of cement productionfuture it from overcapacity brought about by
capacity", "Kazakhstan's cement prices,"fierce competition will not be long before that we
"insufficient supply of cement market inwere crowded together, relying on price-beat
Kyrgyzstan," "Vietnam from January to May thisbayonet charge, or is it a rainy day, early to plan
year, a substantial increase in building materialto go abroad to open up some Xintiandi? It is
sales" and a large number of news shows that inworthy of cement enterprises, especially large
our neighboring countries, the cement demand isenterprises headed people seriously consider a
very strong.question.
While the cement in the Western developed