China: China Resources Cement (CRC) saw its net profit rise by 43.6% year-on-year in 2013 to US$430m from US$299m in 2012. Its turnover rose by 15.8% to US$3.78bn from US$3.27bn. The southern Chinese cement producer attributed the rise to improving market conditions since April 2013.
CRC increased its sales volumes of cement by 20% to 67.1Mt in 2013 from 55.9Mt in 2012. Sales volumes of clinker fell by 11% to 7.78Mt from 8.74Mt. By province sales volumes of cement increased by 29% to 23.2Mt in Guangdong, 13% to 23.5Mt in Guangxi, by 29% to 9.4Mt in Fujian, by 1% to 4.0Mt in Hainan, by 20% to 3.8Mt in Shanxi and by 15% to 3.1Mt in Yunnan.
During the year CRC increased its clinker production capacity by 1.4Mt/yr and its cement production capacity by 2Mt/yr due to the completion of a 4500t/day clinker line and two cement grinding lines at Changzhi, Shanxi province. Two 1200t/day clinker lines in Shanxi ceased operation due to their likely lack of compliance with new environmental emissions standards, reducing the group's cement production capacity by 1Mt/yr.
In its annual report CRC also mentioned that it had accelerated its NOx reduction upgrades at its production lines. As of 31 December 2013 37 clinker lines had been upgraded with two outstanding scheduled for the first half of 2014. The group has also completed upgrades for dust collection systems at five clinker lines with upgrades for eight other lines scheduled. At the end of 2013 CRC had a total cement production capacity of 75.5Mt/yr and a total clinker production capacity of 51Mt/yr.
New construction projects CRC started during 2013 included a 1.6Mt/yr clinker line with two cement grinding lines with a combined capacity of 2Mt/yr at Jinsha County, Guizhou costing US$171m; a 1.2Mt/yr clinker line and two cement grinding lines with a combined capacity of 2Mt/yr in Midu County, Yunnan costing US$142m; a 1.6Mt/yr clinker line and two cement grinding lines with a combined capacity of 2Mt/yr at Hepu County, Guangxi costing US$168m; and a 1.9Mt/yr clinker line and three cement grinding lines with a combined capacity of 3Mt/yr in Lianjiang County, Guangdong costing US$218m.
CRC chairman Zhou Longshan said that the state-owned company plans to increase production capacity through its own projects and through acquisitions focused on Guangdong, Guangxi, Hainan and Fujian in 2014. He expects demand for cement in China to grow by 6 – 8% in 2014.