ONESTONE CONSULTING S.L.

Cutting excess capacity in China

CRH

7 Mt/a Shuanyang cement plant

CRH

IMF

1 Projected GDP growth

IMF

OneStone Research

2 Development of PPC

OneStone Research

NBSC

3 China’s cement production

NBSC

OneStone Research

4 Cement and clinker production

OneStone Research

5 Cement and clinker capacities

OneStone Research

6 Capacity utilization rates

OneStone Research

7 Development of NSP Technology

OneStone Research

8 New contracted capacities

OneStone Research

9 TOP 10 cement groups

OneStone Research

Anhui Conch

10 Cement plant of Wuhu Conch

Anhui Conch

Shandong Shanshui

11 Cement plant in Shandong

Shandong Shanshui

Huaxin Cement

12 Cement plant in the Eastern Division

Huaxin Cement

China Resources Cement

13 Lianjiang City cement plant

China Resources Cement

HeidelbergCement

14 Jingyang cement plant in Shaanxi province

HeidelbergCement

OneStone Research

15 Capacity utilization by the TOP 10

OneStone Research

16 Regional cement development

OneStone Research

Anhui Conch

17 Kalimantan Conch in Indonesia

Anhui Conch

China’s cement industry is at a crossroads. The gap between cement demand and supply has widened and production, sales, prices and profits have declined. However, cement producers’ cost control and self-discipline have improved and overseas expansion is increasingly regarded as a way to a better future.

1 China’s economic development

According to China’s National Bureau of Statistics (NBSC) the country’s economy expanded at an annual rate of 6.7 % in the first half of 2017. Property investment grew 8.5 % in the first half. Exports grew by 8.5 %, providing a 7.6 % growth of the manufacturing sector. The strong start in 2017 beat all market expectations and the growth rate is above the 6.5 % goal set by the government for the entire year. Figure 1 comprises the projections in the World Economy Outlook (WEO, April 2017) for China and its peers published by the International Monetary Fund (IMF)....