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Development and Reform Commission to be thoroughly overheated investment in some of the new cement by li miss





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Development and Reform Commission to be thoroughly overheated investment in some of the new cement by
Article Posted: 02/14/2011
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Development and Reform Commission to be thoroughly overheated investment in some of the new cement


 
Business,Business News,Business Opportunities
The National Development and Reform Commission will next week begin the investment situation of cement market research in order to prevent over-investment in the cement spread across the country. China Securities News, 22, was informed from the sources in the national survey is completed, some provinces and cities to suspend the award to build new cement production line.

"Zhejiang" phenomenon may spread
Problem of overheated investment in cement can be said to be commonplace, but in all levels of government to speed up investment in the investment policy, investment in the market for cement has not diminished enthusiasm.

Cement from January to May this year, accumulated investment amount of 52 billion yuan, compared with an increase of 78.58 percent over the same period last year, the annual additional amount of 16.7 billion yuan, the project put into operation 176. Among them, the North, Southwest region, the two cement investment growth than doubled last year, up 103.91 percent year on year in North China, Southwest China grew by 223.6 percent.

This regard, China Cement Association, Lei Qianzhi expressed great fear. "The so-called" Zhejiang "phenomenon (Zhejiang Province, appeared in 2006 because of overcapacity caused by loss of the entire industry, cement margins are still in the area) is not an isolated phenomenon, may be gradually developed into other areas." He also pointed out that over-investment One form of excess capacity, companies to maintain their capacity to play, the price to make a fuss, so cement price war is inevitable, and even affect the cement industry's overall profit, even lead to loss of the whole industry, but this situation in the Century 90's to have happened.

And has become the new "Zhejiang" in behalf of Sichuan Province, over-investment situation is more serious. It is understood that, in 2009, Sichuan cement production capacity of 13,150 tons, 8,200 tons of new dry process cement production, accounting for 62% of capacity. 2010, 24 production lines will be put into production, new capacity 3,600 tons; the end of 2010, 96 new dry process production lines, production reached 11,080 tons, will account for 14,640 tons of cement production capacity of 81%. Just a year ago, the local cement production capacity has only 8,000 tons, of which 2,670 tons of new dry process cement production, accounting for 33%. To this end, Sichuan, sent two warning Cement Association, recommended that local governments not to concrete investment projects, investment in new projects to be considered before the resources, logistics and markets.

Some provinces and cities will stop granting new lines
"This two-day trip is to make research program, estimated that the real start until next week the research." China Securities Daily News reporter was informed from an authoritative source, the NDRC is the lead organization around the cement investment research to complete a national survey , will be made of cement projects approved new norms.

It is understood that this research mainly focused on three aspects: First, local cement market demand; Second, over production and new cement projects in the overall size; the three have been approved or pending approval Cement Project as a whole. Informed sources, although the research area involves the whole country, but there are also key provinces, including Sichuan, Anhui, Hebei, Hunan, and several cement production capacity is already very high total investment is still high in the provinces heat will be a key research area.

Together with the above reported a series of recommendations. "For some of the apparent excess capacity of cement area, may grant a new line will stop." The authorities said the investigation is completed, the state will build a new cement production line has approved a more stringent control measures in total, could even win completion of the pending start of some projects approved. Those located in regions of excess capacity to get serious long-term does not start after approval, or insufficient funds bear the brunt of the project will be cleared of objects.

It is reported that the investigation will last a month or so, and ultimately Development and Reform Commission in August is expected to be formally issued a document to strictly control the middle of the new capacity of cement.

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