China to cut cement production capacity by 70Mt in 2019

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China: The China Building Materials Federation has released plans to cut cement production capacity by 70Mt in 2019 as part of its efforts to reduce air pollution and increase industry efficiency through consolidation. Ideally the federation’s work plan wants the largest 50 national producers to cut all production lines with a capacity below 2000t/day and tp upgrade old technology on the remaining lines, according to Yicai Global. Typically larger cement production lines in the country manufacture 5000 – 7000t/day.

China produced 2.2Bnt of cement in 2018. The new work plan will order all cement companies to shut down production lines producing below 2000t/day in areas where pollution is high. The Beijing-Tianjin-Hebei region in northern China has been identified as one of these areas. The scheme also encourages industry consolidation, aiming to bring over 60% of national production to the top 10 cement makers, and wants to eliminate poor-quality cement products so that they make up less than half of all cement made. It wants to use mergers and restructuring to do this and it supports integration through cross shareholdings and asset exchanges.

Last modified on 10 July 2019


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