Displaying items by tag: China
China Tianru revenue rises by 14% to US$1.4bn in 2013
02 April 2014China: China Tianrui Group Cement Company has reported that its revenue rose by 14% to US$1.40bn in 2013 from US$1.22bn in 2012. Its gross profit remaining static at US$305m in 2013 and its earnings before interest, taxes, depreciation and amortisation rose slightly to US$356m. The Chinese cement producer attributed the rise in revenue to increasing sales volumes of cement in response to a 'proactive' pricing strategy and a general increase in demand driven by rural development and the demand from certain large-scale infrastructure projects, such as the South-North Water Transfer Project.
Sales of cement rose by 19% year-on-year to US$1.30bn in 2013. Sales of clinker fell by 23% to US$107m. By region, the company saw its revenue in its Central China region rise by 13% to US$1.01bn. In Northeastern China its revenue rose by 16% to US$385m. By volume, the company sold 36.9Mt/yr in 2013, a rise of 41.4% from 2012.
In 2013 Tianrui acquired one 1.2Mt/yr clinker production line and six cement production lines with a combined production capacity of 5.3Mt/yr in Liaoning and Henan provinces, at a cost of US$109m.
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.
Ministry of Industry and Information Technology sets timetable to eliminate out-dated cement production capacity
05 March 2014China: The Ministry of Industry and Information Technology (MIIT) has set a timetable for eliminating out-dated cement plants. The MIIT has requested that local governments in China work out structural adjustment plans for the cement industry before the end of March 2014 and propose detailed treatment measures towards on-going and finished contravening cement projects before the end of June 2014, according to the Xinhua Chinese news agency.
Hebei province has been asked to cut its cement production capacity by 60Mt/yr by 2017. Jiangsu province is to cut its production capacity by 10Mt/yr and Jiangxi province must cut its capacity by 5Mt/yr. The MIIT expects that cement production utilisation will be improved to over 75% by the end 2017 after the cement industry follows its measures. Emissions of dust and nitrogen oxide will be cut by more than 40% and the cement industry's average profit margin should be no less than the manufacturing industry's average.
17 more cement plants bite the dust in Hebei
18 February 2014China: The demolition of 17 more cement plants in Shijiazhuang, Hebei province, began on 17 February 2014, two months after the first batch of demolitions to improve air quality.
"After the second batch of demolitions is finished in March 2014, we can meet the target of reducing excess capacity three years ahead of schedule, reducing production capacity by 40%," said Wang Liang, the mayor of Shijiazhuang. Hebei was hit by many smoggy days in February 2014, causing serious pollution. On 17 February 2014 the air quality index exceeded 200, classed as 'very unhealthy' by the US Environmental Protection Agency (EPA).
The demolition of 18 cement grinders and 377 storage bins at the 17 plants will be completed by the end of March 2014, reducing production capacity by 9.1Mt/yr.
To control pollution, the provincial government has announced goals for cutting excess capacity in high-polluting industries, including cement production, in every city. Shijiazhuang, the provincial capital, must dismantle 15Mt/yr of cement production capacity by 2017.
The two batches of demolitions have targeted 35 plants, resulting in direct economic losses of US$180m and affecting 3780 workers. "We may suffer slow economic growth in the short term, but this will work in upgrading the economic structure and will result in a good living environment for our people, so it is worthwhile," said Sun Ruibin, Party chief of Shijiazhuang.
Wang Jiangtao, marketing manager at Yuancheng Construction Material Co, one of plants being demolished in the city of Luquan, said, "We will follow the government project and want to control air pollution as well so we agreed to close the plant. But it's still sad to see the plants being demolished," he said, adding that the company had invested more than US$4.94m in a new system in 2011. "We have not made enough money to cover the expenses up to now." Under government compensation plans, the plant may get US$1.65m and will receive other support for its future business, including preferential policies and tax relief, Wang added.
Two of Jinyu Dingxing Cement Co's plants were among the first batch of demolitions in December 2013, but so far new projects have not been decided on, said Feng Jinmin, a manager at one of the two plants that were closed. "Of the US$2.47m in compensation expected from the government, we have received half and are still awaiting government guidance on our future business," he said, adding that this may take years.
Beijing bans new cement, refining, steel, coal and power plants
23 January 2014China: The city of Beijing will ban the construction of new oil refining, steel, cement and thermal power plants as well as the expansion of existing projects, in accordance with the government's latest policy document aimed at tackling air pollution.
The ban will take effect from March 2014. The policy document, which was approved by local legislature in mid-January 2014, also commits China's capital city to cut total emissions of particulate matter (PM) 2.5 by 5% in 2014.
Beijing was hit by weeks of hazardous smog in January 2013, prompting the central government to pledge tough new measures to improve air quality throughout the country and head off public disquiet about the environmental costs of economic growth.
Construction of rotary kiln at Shaaxi Fuping cement plant completed by China 20MCC Construction Group
15 January 2014China: Construction of the No. 1 rotary kiln at the Shaaxi Fuping cement plant, Shaaxi Province has been completed by the China 20MCC Construction Group (20MCC Group). Construction started in March 2013.
The range of the masonry work covered by 20MCC Group included the rotary kiln, grate cooler, hot kiln hood, tertiary air duct, hot-blast stove and the other equipment of the two production lines, casting of wear-resistant ceramic materials for the raw mill, cement grinding mill and the pipelines on the top of the slag mill.
Clinker production capacity at the plant will be 4.03Mt/yr, ground slag capacity will be 1.2Mt/yr and cement capacity will be 3.35Mt/yr.
Dongwu Cement to form joint venture with Hengtong
10 January 2014China: Dongwu Cement and Hengtong Group have agreed to establish a 50:50 joint venture company with a registered capital of US$24.8m.
The joint venture scope includes highways, urban roads, bridges, tunnels, foundation works, sewage treatment and drainage works. It also covers the construction and management of industrial and civil buildings and landscaping projects, including engineering technical consultation, project supervision, project bidding agency, property management, sales of building materials and domestic trade.
Fujian Cement sells 12m shares in Industrial Bank
03 January 2014China: Fujian Cement Inc sold 12m shares in Industrial Bank Co Ltd between 30 - 31 December 2013. Fujian Cement will earn US$14.5m from the deal and continues to hold 50.4m shares in the Industrial Bank.
Demolition of 18 cement plants in Hebei starts
18 December 2013China: Shijiazhuang, Hebei province has started the demolition of its first batch of 18 cement plants on 17 December 2013 to fight air pollution. 74 cement plants in the suburbs of Shijiazhuang are targeted for deconstruction by March 2014 according to China Daily. The planned demolition is planned to include all the western areas of the city by 2017.
"The cement companies have been a major source of dust pollution, making them a priority for demolition," said Niu Yongzhi, the official from the Bureau of Industry and Information in Shijiazhuang who is in charge of the project.
Demolition of the first 18 cement plants will be completed in January 2014. Removal of these cement units is expected to significantly reduce dust and nitrogen oxides emissions. More than 3500 cement plant employees will lose their jobs in the demolition.
The government will pay compensation to the companies whose plants are being shut down. Seven plants in Pingshan county will receive an average of US$1.5m each and tax breaks will be given to the companies when they start other businesses. The other 11 cement plants in Luquan will receive similar compensation.
The 18 cement plants, scattered throughout the northwestern area of Shijiazhuang produce 9.4Mt/yr or about 21% of the city's annual output. By 2014 cement production capacity in Hebei will drop to 61Mt/yr, half of the province's cement production in 2012.
CKI Holdings cement plant launches production
17 December 2013China: CKI Holdings has announced that the cement plant owned by its subsidiary, Green Island Cement, has officially commenced production. The cement plant is located in Yunfu city, Guangdong province and the total investment was US$1.3bn.
Lambert Leung, chief of materials division at CKI Holdings, stated that the group might invest another US$600m to build a second production line if the operating performance is satisfactory.