Cement industry in China

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The cement-making in China is a periodicity industry and the largest in the world.

Contents 1 Recent History 1.1 Output 1.2 Challenges 1.3 Concentration 1.4 M&A 2 Largest 19 Chinese cement manufacturers

[edit] Recent History

China's cement industry started to recover in 2006 after suffering the difficulty in 2005, and then the new turn of cement demand had come. China cement output reached 1.35 billion tons in 2007, up 13.5% year-on-year; and the sales was RMB 410.4 billion, rising 23.1% year-on-year, the total profit was RMB24 billion, increasing more than 60% year-on-year.

[edit] Output

China cement output reached more than 500 million tons in the first half of 2008; the figure will break 1.4 billion tons for the whole year considering the strong demand from post-earthquake reconstruction.

[edit] Challenges

China cement still faces many challenges, e.g. unreasonable structures, too many small companies, and backward production capacity. In 2006, China's central government issued a series of policies to accelerate the adjustment in the cement industry and eliminate backward production capacity. The National Development and Reform Commission confirmed that manufactures with backward output capacity should be entirely eliminated during 2007 to 2010, but the following 12 manufacturers will be strong supported.

[edit] Concentration

To improve the concentration of clusters is the primary objective for the structure adjustment of China cement industry considering the current concentration degree is only 20%. China cement industry is projected to accelerate its structure adjustment for fiscal year 2009. In addition, the major players will enhance the waste heat generation projects, as well as new production line construction. Moreover, the cement industry has a lack of capital as a whole; IPO and refinancing have been proposed as the main ways to solve the capital bottleneck.

[edit] M&A

With the recovery of China cement industry, along with the challenges in China cement industry, foreign investors have started to pay attention to China cement market, more and more are involved in the activities of merger and acquisitions.

[edit] Largest 19 Chinese cement manufacturers

1. Anhui Conch Cement Co., Ltd
2. Tangshan Jidong Cement Co., Ltd
3. Datong Cement Co., Ltd
4. Xinjiang Tianshan Cement Co., Ltd
5. Sichuan Shuangma Cement Co., Ltd
6. Henan Tongli Cement Co., Ltd
7. Inner Mongolia Xishui Chuangye Co., Ltd
8. Anhui Chaodong Cement Co., Ltd
9. Jiangxi Wannianqing Cement Co., Ltd
10. Ningxia Saima Industry Co., Ltd
11. Taiyuan Lionhead Cement Co., Ltd
12. Shaanxi Qinling Cement Co., Ltd
13. Sichuan Golden Summit (Group) CO., Ltd
14. Huaxin Cement Co., Ltd
15. Fujian Cement Co., Ltd
16. Hebei Taihang Cement Co., Ltd
17. Jilin Yatai Group Co., Ltd
18. Guangdong Tapai Group Co., Ltd
19. Gansu Qilianshan Cement Co., Ltd