On April 20th, the "2021 China Cement Industry Summit" opened in Hangzhou, Zhejiang. The theme of the summit was "Same Mission, Seeding Innovation, and Common Development". Nearly a thousand representatives of industry leaders, technical experts, cement companies, and equipment manufacturers People attend the meeting. Cao Jianglin, executive chairman of China Cement Association and general manager of China Building Materials Group, was invited to attend the meeting and delivered a speech.

Xiao Yi will share the speech record with everyone.

Speech Record

Co-construction of industry ecology
Promoting the Sustainable and Healthy Development of Cement Industry in the 14th Five-Year Plan

Cao Jianglin, General Manager of China National Building Materials Group

Thank you very much for your support to China's building materials. Today I 'd like to share two aspects:

"13th Five-Year" Cement Industry Development

During the "Thirteenth Five-Year Plan" period, the cement industry performed well in the raw material industry. It is the leader of structural adjustment, the practitioner of supply-side structural reforms, and the promoter of ecological civilization construction. The efficiency is also the vanguard of the entire raw material industry.

The achievements of the cement industry during the "13th Five-Year Plan" period are worthy of the pride and pride of cement people. The total profit of the cement industry in 2019 will be 186.7 billion yuan, and in 2020 it will be 183.3 billion yuan. The fundamental reason behind the good benefits is that the majority of cement practitioners, including engineering design units, environmental protection units, and the media, are self-reliant and take the initiative.

During the 13th Five-Year Plan period, the cement industry has undergone four major adjustments:

One is the adjustment of technical structure. At present, the proportion of new dry process cement production line in China is close to 100%. In this technical structure adjustment, the former National Building Materials Bureau, Conch Cement, and the majority of engineering design units have played an important leading role. Today, China's cement technology has reached the level of "running side by side" with the world's first class.

The second is organizational restructuring. At the end of 2004, I just entered the cement industry. At that time, the industry was highly fragmented and there were about 6000 cement enterprises. But by the end of last year, the industry's top 10 clinker capacity concentration reached 57.4. Although this concentration is still relatively high compared with domestic steel and other industries, it is still far from the internationally accepted production capacity concentration of the top three companies in a single industry to reach more than 70%.

In this profound organizational structure adjustment, CNBM actively cooperated with conch cement and other peers, and successively established southern cement, northern cement and southwest cement, as well as the subsequent "two-material reorganization", which promoted the continuous improvement of industry production capacity concentration. Without such organizational restructuring, it is difficult for China's industry to achieve benefits of more than 180 billion yuan.

Third, market restructuring. The symbol of market structure adjustment is the proposal of "staggered peak production. Cement is not like other consumer goods. Vicious competition and crazy production cannot bring good industry benefits. The proposal and implementation of "staggered production" shows the maturity and wisdom of the cement industry. Today's achievements in the adjustment of market structure are the result of the joint efforts of everyone present, among which China Building Materials and Conch Cement have played a leading role.

Four is the management structure adjustment. To this day, many people's impression of the cement industry is still "dirty, messy and poor", but in fact, most cement factories today are more clean and tidy than food factories. This is a manifestation of the cement industry's good learning and innovation. It is the result of using automation, informatization, and intelligence to empower traditional industries.

In the past two to three decades, the cement industry has made in-depth adjustments in the above four aspects, and the industry benefits have continued to improve. Not only can most of the main manufacturers in the cement industry make money, but also benefit the upstream and downstream industries.

"Fourteenth Five-Year Plan" Cement Industry Outlook

Analysis of the situation of cement industry during the 14th Five-Year Plan

1. Double platform period. From the demand side, at least in the first three years of the "14th Five-Year Plan", according to the national economic situation, the output of clinker will remain above 1.5 billion tons, and the sales of cement will remain above 2.2 billion tons. From the supply side, because of the constraints of a number of conditions, worse than the "13th Five-Year Plan" is a small probability event. Therefore, supply and demand will be in a double platform period and will not decline significantly. This is our opportunity.

2. There are many development constraints. The constraints for the development of the cement industry in the "14th Five-Year Plan" are much more than those in the "13th Five-Year Plan", which can be summed up as "three highs and two weights".

"Three high" means:

High resource costs. At present, the auction cost of aggregate mines in Zhejiang has reached 30 yuan, and the cost of mines along the Yangtze River and in the central region is also above 10 yuan. The cost of resources will be higher and higher in the future.

The reduction cost is high. One day, the annual demand for cement will fall below 2 billion tons, or even fall back to 1.5 billion tons, with a reduction of 0.5 billion tons to 1 billion tons, and cement enterprises will be the main bearers of the reduction cost.

Environmental costs are high. At present, the state promotes the overall layout of "five in one", attaches great importance to the construction of ecological and environmental protection, and the central government is also carrying out regular supervision of ecological and environmental protection. Enterprises should not only calculate temporary costs, but also calculate future costs and environmental costs.

"Double" means:

The task of reducing emissions is heavy. The state requires carbon peaks in 2030 and carbon neutrality in 2060. The cement industry is a major carbon emitter, and the GCCA Global Cement Business Organization has called for carbon neutrality by 2050, a very heavy task.

Serious excess. The cement industry is currently in a state of serious overcapacity, but there are still enterprises through technological transformation to expand production, replacement to expand production, which will increase the degree of excess in the cement industry.

How to meet the challenges of the cement industry in the future

In general, it is to practice the new development concept, to supply-side structural reform as the main line, to build the industry ecology. The achievements of the cement industry during the "13th Five-Year Plan" period are mainly due to supply-side structural reforms, and the "14th Five-Year Plan" should still be based on this as the main line. A single flower is not spring, we must build an industry ecology. The following measures should be taken:

One is to limit the new, conscious replacement. We need to "cut.

The second is to eliminate backwardness and act together. It is also a "reduction. The abolition of 32.5 cement has been called for 10 years, but so far, only a small part of it has been eliminated. If it can be eliminated completely, it will certainly be good for our industry. In addition, small production lines and grinding stations should also be eliminated. The reason why our industry cannot completely "run side by side" in the world is mainly due to some backward production capacity.

Third, green priority, independent emission reduction. To respond to the national "3060 carbon target" requirements. When our industry reaches its peak and when it is neutralized, we must advance it, but don't say how long it will be in advance, because carbon emission reduction is easier said than done. It is a very complex system. It is a change at the national strategic level and a deep adjustment of the economic structure. I call on everyone to seriously understand the requirements of the country, carefully study the industry situation, and set a reasonable amount of advance.

Four is innovation-driven, strive to lead. Work on "strong. China's major cement design and engineering companies are first-class in the world, and the emission indicators of cement enterprises are better than those in Europe and the United States, but we have not yet fully come to the front in some technologies, especially equipment technology and engineering fineness.

Fifth, self-discipline management to solve the problem of food and clothing. Work on "good. The whole industry common development, common progress. Our industry has high requirements and goals for itself, but if enterprises and industries do not make money, nothing can be said. I think insisting on peak-shifting production is the most basic thing in our industry.

During the "14th Five-Year Plan" period, as long as the cement and upstream and downstream industry enterprises adhere to the new development concept, take the supply-side structural reform as the main line, and jointly build the industry ecology, the good days of the industry will continue. I am full of confidence in this, China National Building Materials is willing to work together with you.