China Encourages 60 Leading Cement Producers to Enhance Degree of Concentration in Cement Industry

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Researched by Industrial Info Resources (Sugar Land, Texas)--China will encourage 60 leading cement producers, including 12 large enterprise groups and 48 backbone enterprises, to increase their degree of concentration in the cement industry through mergers and restructuring, according to a report published by the National Development and Reform Commission on its website on May 5, 2008.

In 2007, the output of cement reached 1.36 billion metric tons and the output of chamotte reached 956.3 million metric tons. Nearly 800 new-type dry cement production lines were built and the proportion of new-type dry cement increased to 55%. However, the degree of concentration is still low. The output of the top 10 and top 60 producers accounted for just 19.43% and 32% of the total, respectively.

The report states that the provincial investment administration will not only implement an admittance policy for new projects, but also allow mergers and restructuring. The report also suggests clear specifications on the elimination of backward production equipment and processes according to the requirement of the industry policy. Backward equipment and processes such as dry hollow kiln, wet kiln, parts of mechanical shaft kilns, as well as enterprises with capacities less than 200,000 metric tons per year, will be eliminated by the end of 2008.

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