China National Building Material’s cement sales up in 2017 despite production overcapacity

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China: China National Building Material’s (CNBM) revenue from its cement operations rose by 22% year-on-year to US$12.4bn in 2017 from US$10.1bn in 2016. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBTIDA) rose by 27% to US$2.94bn from US$2.32bn.

Cement production volumes from the group’s four main divisions – China United, South Cement, North Cement and Southwest Cement – remained stagnant at 258Mt in 2017. However, the group’s cement production capacity for the four divisions was 411Mt/yr giving it a capacity utilisation rate of 63%. Overall the group said it had a cement production capacity of 525Mt/yr.

As well as following government-mandated structural reforms, including environmental changes and production peak shifting, CNBM said that China United started production at a new plant in Mongolia. North Cement completed a merger between its Harbin and Longbei subsidiaries. Southwest Cement completed a merger between Southwest Sichuan Cement and Chongqing Southwest Cement to form Chuanyu Southwest Cement.

Last modified on 28 March 2018

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