Displaying items by tag: Ministry of Industry and Information Technology

China: The Ministry of Industry and Information Technology (MIIT) and related departments are considering draft guidelines on eliminating outdated production capacity in cement, ship-making, electrolytic aluminium and glass industries, according to Xinhua. At least 500Mt of ‘low-grade’ cement production capacity will be phased out.

The central government decided to promote supply-side reform at the end of 2015. Eliminating outdated capacity is a top priority. Methods to do this include phasing out outdated capacity, removing ‘zombie’ enterprises and promoting industrial reorganisation.

Kong Xiangzhong, vice president of China Cement Association, has advised the central government to provide certain compensation for the industry and establish a special fund so as to appropriately deal with the re-employment of redundant personnel and enterprise debts. Several provinces have specified their targets. Guangdong Province plans to cut clinker production capacity to 110Mt by the end of 2018.

China: China's Ministry of Industry and Information Technology (MIIT) has unveiled a document to ask cement companies in north China to carry out peak-shifting production on a trial basis in the winter. The peak-shifting production will not only ease the 'haze weather,' but also enhance the cement market and reduce producers' costs, according to industry insiders.

Due to fierce market competition, cement enterprises in north China produce cement at full capacity in the winter to seize the opportunity when the energy supplies end and building operations start. However, in the summer, many enterprises are forced to produce at half of their installed capacity due to the glut of cement on the market. As the cement industry is a high energy-consumption industry, the overlap of cement production and energy supply in winter increases coal consumption and leads to haze weather in north China. If peak production were carried out in winter for four months, about 4.36Mt of coal and 177bnm3 of flue gas emissions would be cut in the whole northern area, which could help improve the local environment. The peak-shifting production could also help ease overcapacity.

After the peak-shifting, cement enterprises in north and northeast China will suspend production for four to five months in winter and the overcapacity rate in the domestic cement industry will fall to 16 – 21% from the current 51%, which would help enhance the industrial climate.

China: The Ministry of Industry and Information Technology (MIIT) has released a plan to transfer the production capacity of six cement projects that are currently being built in Sichuan Province. These schemes, with a total cement production capacity of 6Mt/yr, will be publicised on the national production capacity replacement quota platform for future transfer.

China: 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.

National: The Ministry of Industry and Information Technology has released a third list of 58 companies, including cement companies, which should cut their excess production capacity by the end of 2013 as a part of the country's economic restructuring drive. The ministry said that local authorities must ensure that overcapacity is eliminated, rather than transferred to other regions.

Regional: South-eastern Fujian province produced 52.1Mt of cement in the first eight months of 2013, a year-on-year increase of 13.3%, according to data released by the local statistics bureau. Jiangxi Province produced 54.8Mt of cement in the first eight months of 2013, a year-on-year increase of 21.1%.

Central Hubei province saw cement output increase by 8.3% year-on-year to 60.3Mt in the first seven months of 2013.

North-west Shaanxi province saw cement output total 53.9Mt in the first eight months of 2013, a year-on-year increase of 9.3%.

Southern Hainan province has produced 10.5Mt of cement in the first seven months of 2013, a year-on-year increase of 26.3%. South-central Hunan province produced 9.47Mt of cement in August 2013, a year-on-year decrease of 2.8%.

Corporate: Gansu Qilianshan Cement Group plans to spend US$43.4m on acquiring a 100% stake in Longnan Runji Cement to expand into the Gansu province market. Runji Cement currently operates a 2500t/day dry-process cement plant.

China: Output of cement in China reached 417Mt in the first quarter of 2013, a rise of 8.2% year-on-year according to data issued by the National Bureau of Statistics of China. Cement output in March 2013 grew by 6.9% year-on-year to 187Mt.

In a separate formal announcement China's Ministry of Industry and Information Technology informed the provinces that 73.5Mt of obsolete cement production capacity will be eliminated in 2013.

Production in 2012: China built 124 new dry-process cement production lines and added 160Mt of cement clinker production capacity in 2012, according to the China Cement association. China had 1637 dry-process cement production lines with a production capacity of 1.6Bnt/yr of clinker by the end of 2012.

Sichuan Province in south-western China has seen its cement output climb by 2.02% year-on-year to 130Mt in 2012, according to the local Statistics Bureau. In 2012, Sichuan's cement industry recorded US$7.68bn in total output value, a year-on-year increase of 1.87%. Meanwhile, the industry's profit rose by 0.81% year-on-year to US$0.44bn.

North China's Hebei Province's cement output reached 128.1Mt in 2012. The province's building materials industry recorded US$1.7bn in profit in 2012, a year-on-year decrease of 21.8%.

East China's Jiangxi Province saw its cement output increase by 10.2% to 76.4Mt in 2012, according to the local branch of the Ministry of Industry and Information Technology.

Sinoma: Sinoma International Engineering has announced that the company plans to invest US$25.2m to set up a subsidiary in Hong Kong. The Hong Kong unit will acquire a 68% stake in the India-based cement firm, LNV Technology. Sinoma International said that the acquisition will increase its competitiveness in India's cement engineering market.

Separately, Sinoma estimated that the company's net profit for 2012 will decrease by 50% year-on-year in 2012, compared with a profit of US$247m in 2011.

Company news: Shanghai-listed cement and clinker producer, Xishui Strong Year Co Ltd Inner Mongolia, has estimated that the company's net profit will surge by 590% on-year in 2012, compared with a profit of US$1.51m in 2011.

Fujian Cement Inc expects to earn US$4.17m to US$4.98m in net profit in 2012, a year-on-year decrease of 79.2% to 75.27%.

Henan Tongli Cement Co Ltd, a Shenzhen-listed cement producer, has estimated that its net profit for 2012 will be between US$23.9m and US$28.6m, a year-on-year decrease of 26.1% to 38.1%. Tongli Cement earned US$38.7m in net profit in 2011.

China: China's 12 ministries, including the Ministry of Industry and Information Technology, released a joint restructure plan on 22 January 2013 to promote efficiency in the cement industry.

Under the plan, China's top 10 cement manufacturing enterprises will account for 35% of industrial concentration by 2015. The plan calls for three to four leading cement clinker producers to have a capacity of 100Mt/yr by 2015.

In addition, China will encourage cross-regional and cross-ownership mergers and acquisitions among its major cement manufacturers.

China: China aims to make its top ten cement manufacturers hold at least 35% of the domestic cement market by 2015 according to its 12th Five-year Plan. Currently China's top ten cement manufacturers hold less than 25% of the domestic market.

China's Ministry of Industry and Information Technology (MIIT) has released the 12th Five-year Plan (2011-2015) for the country's building materials industry and five sub-plans for five building materials sectors including cement and plate glass. From 2011 to 2015, the development of the industry will mainly focus on eliminating outdated production capacity and promoting mergers and acquisitions.

According to the plan, cement companies above a designated size will expand at an average rate of above 10% from 2011 to 2015. 250Mt of outdated production capacity will be eliminated. Cement producers are expected to cut emissions of nitrogen oxides and sulfur dioxide by 10% and 8% respectively. Emissions of carbon dioxide per unit of industrial added value will be reduced by 17%.

It forecasts the domestic market demand for cement to rise by 3%-4% annually on average to reach 2.2Bt in 2015, a slower pace than the current level as the country increases efforts to make its economy less reliant on fix-asset investment and more on technologies and consumption.

China: China's cement industry has maintained its rapid growth in production, sales and profits so far in 2011, according to the latest data released by the Ministry of Industry and Information Technology (MIIT).

According to MIIT statistics China produced 198Mt of cement in June 2011, an increase of 19.9% over June 2010. This represents record highs for both monthly cement output and monthly growth rate. In the first half of 2011, China's cement production increased by 19.6% year-on-year to 950Mt.

Cement and clinker exports stood at 5.6Mt during the same period with an export value of USD310m for June 2011, down 35.5% and 14.9% year-on-year respectively.

According to the statistics provided the cement industry witnessed sales of USD50.4bn in the first five months this year with profits of USD5.4bn, up by 48% and an extraordinary 170% year-on-year respectively. Chinese cement production statistics are viewed with skepticism by some in the cement industry, who believe that they may be inflated.