Capacity utilisation of China's cement industry falls to 65%

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China: China's cement industry has been trapped in sharp profit decline and its actual capacity utilisation has declined to 65%, according to an Economic Information Daily report.

Industry insiders believe that previous high speed development has overdrawn the demand for cement and that closing obsolete cement capacity and promoting mergers and restructures will be the new orientation for the industry. At least 500Mt/yr of low-grade cement capacity will be eliminated.

The number of loss-making cement companies has reached 1339 and accounted for 40% of the total, according to Kong Xiangzhong, Executive Vice President and Secretary General of the China Cement Association. Cement companies lost US$2.63bn in the first three quarters of 2015 and among the profit-making producers, many were suffering invisible losses.

Last modified on 16 December 2015

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