China's cement industry, subject to adjustments
China's cement industry, subject to adjustments1, the industry outside of China's cement enterprises to go abroad a loud voice
In recent years, China's cement industry for the rapid development of domestic production capacity could lead to a surplus situation, at all levels within and outside the industry have been discussing with the call for the domestic large-scale cement enterprises to go abroad, to foreign investment.
China Cement Association, according to the statement the Secretary-General KONG Xiang-Zhong, China's cement enterprises go out consists of three levels: Firstly, the cement exports, and second, cement technology and equipment companies go global, three cement manufacturing companies invest and build factories overseas. In these three dimensions, China's cement products to enter the international market, the earliest cement export peaked in 1996, when exports of 12 million tons of cement. Followed up the fluctuation experienced ups and downs, but compared to our more than 50% of the world in terms of cement production, cement ratio of exports has been low.
The cement technology and equipment companies go out the results of the most significant, in which they stressed, is Sinoma International, since 2003, just a few years, and its cement production line overseas construction general contracting projects, has spread to the Middle East, North Africa, Southeast Asia's 10 countries, accounting for the world's cement production line for 35% of construction projects has become an internationally renowned company.
As early as in April 13, 2006, the National Development and Reform Commission jointly issued by eight ministries and commissions of "structural adjustment of cement industry to accelerate the issuance of a number of informed opinion", the put "out of the cement companies to participate in international competition in the market" as a the views of the structural adjustment of cement industry is one that state-sponsored cement companies to the international cement market niche.
China Cement Association, to encourage the original cement products are exported to international markets, there is the long-term consideration. On the one hand, if domestic market prices fall, profit margins narrow circumstances, companies could export to obtain better returns from the international market. What is more important is that in China's cement exports to international markets in the process, the domestic cement companies have a better understanding of the local cement market supply and demand changes, product standards, market layout, in order to pave the way for the future, go invest and build factories and preparation.
Some experts believe that the current domestic market competition is increasingly fierce, but still large room for development. But in the long run, market saturation, overcapacity is a matter of time before, in this situation, China's cement, especially large enterprises, it should be brave "going out" to foreign direct investment in factories, the establishment of a local market network participate in international competition in the international market to seek its own share. If you are bent on biting the local market and hold, maintain Woli Dou, playing the same pattern of civil war, it is difficult to improve the comprehensive competitiveness of enterprises.
China's new dry-process cement technology and equipment, from the introduction to their design and manufacturing, development and mature is a startling rate, we mastered the production technology and equipment manufacturing capacity, has now reached the world advanced level, in order to provide a cement companies go global strong technical assurance. At the same time, China's part of the large-scale cement enterprises in production yields, management and financial strength, is entirely possible with some of the world's leading large enterprises comparable. Therefore, regardless of technology, equipment, management, or enterprise strength go out of condition should be fully available.
One obvious fact is that China's production capacity of some large enterprises is not low when compared with international multinational corporations, if only by production basis, to enter the world's top 10 cement companies with strong non-ending one. But today, still no one in China's cement enterprises to enter the world top 10, the direct reason is because not enough of the "offshore Cement Cement Group operating income accounted for over 20% of total operating revenues" and "two or more in foreign direct investment in manufacturing enterprises "It's two from the European Cement Board (fCembu-reau) released a hard standard. China's such a big country in terms of cement say that it is a big regret.
Second, China's cement enterprises "going out" analysis of the objective conditions for
Data show that the world's cement consumption in 2001 soared to 1.64 billion tons in 2005 to 2.3 billion tons, an increase of 40%, with Asia and the Pacific region is an important source of growth of the world's cement. At that time the cement importing countries mainly the United States, Bangladesh, Nigeria, Egypt, Middle East and other countries and regions. Which the United States 20% of the total demand from imports. According to authoritative estimates, the six countries in 2006 Gulf demand for 50 million tons of cement; Algeria 15 state-owned cement companies produce cement less than 800 million tons, while the market demand of 1000 million tons. Vietnam's cement demand in 2005 is about 28.4 million tons is expected by 2010, demand will reach nearly 50 million tons in 2020 will reach 7000 million tons.
Data show that in the 21st century, not China's cement output growth, the world's cement production average annual growth rate of 3.5%, and the pace of world economic development fundamental synchronization. Appeared in the United Arab West, Saudi Arabia, Iran, Yemen, Jordan, Vietnam, India, Pakistan, Nigeria, Ghana, Algeria, Morocco, South Africa, Spain, rapid increase in cement consumption countries. Cement consumption in the Gulf region in recent years, an average annual growth rate of 13%.
Continued until today, Thailand, Laos, Vietnam and other ASEAN country's infrastructure and civilian housing boom has emerged a new one, and its building materials are mostly imported. And the next few years, the ASEAN region in the rehabilitation of infrastructure, the hotel industry, construction and reconstruction of civilian housing will set a rare scale. Tropical storm hit Myanmar after the attack, nearly one billion U.S. dollars needed reconstruction funds, another has started by building part of the Trans-Asian Railway line is also started fund-raising, which are suppliers for the cement has brought great business opportunities.
I looked at the overseas market this year and found that words such as "shortage of cement in southern Vietnam, the local cement market has more than 1,200 million tons of gap.", "India in April added eight million tons of cement production capacity", "Kazakhstan's cement prices," "insufficient supply of cement market in Kyrgyzstan," "Vietnam from January to May this year, a substantial increase in building material sales" and a large number of news shows that in our neighboring countries, the cement demand is very strong.
While the cement in the Western developed countries have been regarded as a sunset industry, but in Asia, Africa, Middle East and other developing regions, as carried out large-scale infrastructure projects underway in full swing, cement demand is increasing, with great market potential. Others, such as "contrarian Lafarge cement business expansion in Africa", "Spanish companies investing in building a cement plant in Bosnia and Herzegovina", "Iran will build cement factory direct foreign" This message is also not uncommon. Reflects one aspect of the overseas market because of strong demand for cement, the new project and a lot of cement. Just think, even the annual output of cement, like Iran, but more than 3000 million tons, needs to invest and build factories in foreign countries can be said that China's cement companies invest and establish factories in foreign countries do not have the condition?
Third, China's cement enterprises are unwilling to "go out" of the subjective and objective factors
I have heard a number of large-scale business owners to "go global" view, in addition to the aforementioned "easy", "far from being simple", the specific point of view there are so few: 1, in Asia, non-state, the Middle East Cement demand is larger and its inadequate capacity of countries and regions, although the demand for cement, the market good, but there is market demand, problems of instability, a larger market variables. 2, Lafarge of France, Italy, cement, Rui Shihao Simon, Mexico, cement, cement, Heidelberg, Germany and other world top 10, after a long-term development, have formed their own pattern of the world market, want to go the sphere of influence of these international giants finger in the pie too difficult. 3, invest and establish factories in foreign countries, but also take into account issues such as the local currency exchange rate, while in some developing countries, the exchange rate is not stable, this is also a need to confront and solve difficult problems. 4, Chinese enterprises to invest overseas, there is a local culture, laws, policies, etc. docking problem, but the domestic situation in some developing countries are also more complex and therefore investment is risky. 5, some countries fear of China's cement and resistance.
These reasons, although it sounds somewhat reasonable, but always felt that reveals a certain reluctance. To Conch, for example, has a production capacity according to the number of conch enough to be among the best in the world's cement giant, management has also been close to international advanced level, and has strong economic strength and strong financing capability, the domestic bank loans to its credit the hundreds of billions of dollars of new investment every year to build a large-scale production line will be up to a dozen. Then as a conch strength, management, technology, to some developing countries to invest and build factories, some of these problems should not be obstacles, should be easy to solve. But today, the author the impression, as if still no Conch Cement in the overseas investment project information appears.
Domestic cement production capacity in the next few levels there are more than 10 million tons, to the present, it seems, were not going to invest and build factories overseas, meaning.
But at the same stone for the building materials industry, the domestic enterprises, in recent years, "going out" strategy will be very successful. Fujian and Guangdong enterprises on behalf of a group of stone enterprises to seize the opportunity to form joint ventures or wholly-owned enterprises in Australia, Egypt, Spain, Tanzania, Kenya, the United States and other countries to build sales outlets or processing point, the use of foreign resources and markets, combined with domestic stone enterprise has the technical and managerial aspects of the comparative advantages of local materials processing and marketing, market prospects are extremely good.
Conditions are ripe, but why China's cement manufacturers will invest directly abroad, for many years, but almost no progress?
The author believes that the main reason for the domestic cement market is still very good, leading enterprises lack the awareness and motivation to go out.
As everyone knows, China's rapid economic development has long been dominated by the capital to pull the. The response to the international financial crisis, but also to expand the infrastructure-oriented. The 1998 Asian economic crisis, countries in order to stimulate domestic demand, mainly road construction in 2008 of the global financial crisis, the central and timely introduction of 4 trillion of investment plans, the success of resolving the crisis on China's economic development. China's large-scale infrastructure construction has been going on for decades, a large number of new construction projects, the emergence of steady flow, the cement demand growth has been out of state, for the cement industry's rapid development has laid a solid foundation, but also so that the days of China's cement enterprises has been quite better.
Be able to invest in cement projects abroad, the only large enterprises. These companies in the country, whether in industry or in the market, have adequate visibility and voice, strong and competitive. The difference is that with small and medium enterprises, regardless of how the excess of domestic production, competition, how intense, they are not particularly worried about their market share in competition with small and medium enterprises, and their advantages are clear. Therefore, these big companies worry about no food in the country.
In addition, China's cement industry development to the current level of industrial structure adjustment is inevitable restructuring of mergers within the industry is certainly a major issue. The upcoming wave of restructuring is to expand the size of these large companies an excellent opportunity. Large Cement Group at this stage through reorganization of the joint, the investment to complete the expansion of the regional division of the domestic market. Therefore, rather than take risks to invest abroad, it is far better in the country through the construction of new lines, and mergers and acquisitions to expand influence. There is a person in charge of large enterprises that do not grasp the opportunities of domestic finished realistically, how can mind, taking into account foreign investment. These words should have a fairly universal.
Moreover, up to now, although there is the threat of excess capacity exists, but the domestic cement market, the overall trend is to the good, the price continued to rise slightly. It is estimated that the next two to three years, the industry is unlikely the deteriorating situation in large companies will not be too sad day.
Objectively speaking, China's large-scale cement enterprises to go abroad to developing countries by building projects, conditions are ripe, there is no insurmountable obstacle. That he could not go out, due largely to themselves, the lack of motivation to go out, consciousness and determination. At present day the industry is also tolerable, but in future it from overcapacity brought about by fierce competition will not be long before that we were crowded together, relying on price-beat bayonet charge, or is it a rainy day, early to plan to go abroad to open up some Xintiandi? It is worthy of cement enterprises, especially large enterprises headed people seriously consider a question.
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Lao News 16/03/2010 (English)
laos news 2010
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