The vertical cement mill promotes the enterprise’s transformation and upgrading

3rd quarters, the growing speed of cement market slows down, the new investment is nearly zero. That means in the following 2-3 years, the needed of industry products and cement market will keep reducing. The cement demand in the future will not grow large, the age of gain benefits from the growing demands has passed away. We predict the growing rate of cement production is nearly 4%.

The reason of this situation:

First is the change of government investment policy. Government wants to control the currency inflation by reducing investment.

Second, although the production of cement has exceeded the demands now, many new cement lines still are putting into production. The date shows that only during the first half year, 20 cement lines put into production. Together with the lines last year, the production capacity is quite large in 3rd quarter, highly over the waste clinker amount of 3 quarters. At the same time, some lines stop production after a short time as the cement prices are too low.

With the market situation nowadays, we advise the enterprises to change the investment.

First, invest in the energy saving and emission reduction, to save the product cost.

　　PIC: Vertical cement mill made by Great Wall Machinery

Vertical cement mill has been widely regarded as the best choice of saving energy and reducing waste products. The power consumption of grinding has occupied 60%-70% of the total consumption. Compared with the traditional ball mill, vertical mill can save more than 30% energy. For an 5000,000t/a cement production line, it can save 75,000,000 kilowatt and highly save the electric charge.

Second, change to the stock optimized

The enterprise should keep optimizing the internal organization, production structure etc. Adjusting the products according to the market demands, but not only product low grade cement. At the same time, by the change of talents structure, research and development, extending the up and down stream of industrial chain, invest in different areas, increase the benefits parts.

Third, invest in management improving

This way can not only solve the production cost problem ,but also can solve the future management problem. Nowadays, many enterprises are busy production, but ignore the company culture and quality improving of total staff. If the staff do not have the awareness of giving, the enterprises cost saving policy can not be carried out. Whereas, if the staff have the centripetal force, they can help the enterprises lower the cost, win more benefits.

Forth, invest in foreign market.

Now many enterprises has built factories overseas. For example, Anhui Conch cement has invested in Indonesia, Huaxin cement has invested in Tajikistan etc. Domestic cement enterprises build cement line overseas, not only can solve the employment problem in the invested place, but also the return on investment is higher than domestic. Anyway, the enterprises should have a certain strength, international management team if they want to build factory overseas.

In the long term, big enterprises developing overseas are good for the market diversification, lower the risks and strengthen the risk control ability. For the oversea factory, except the raw materials, the future market developing room, the political situation, local laws and employees quality also should take into consideration.

In the last, the cement industry still need improve the market concentration.

First, the enterprises merging and reorganization can make the market structure more reasonable.

Second, as the depressed market now, weed out many backward capacity, promoting the healthy development.

Third, play the role of industry association, strengthen the industry self discipline, reduce the waste emission, realize the efficiency standards.

During the depressed market, demands are less, enterprises initiative limit the production, reduce the market put volume. By these ways, can control the relationship between demands and supply.