Regional cement capacity reductions in China

Following the news that China plans to curb coal use and crackdown on heavy industry in a bid to improve air quality, further details have emerged on how this will affect the cement industry in different regions of the country. Reuters, citing China’s Environment Ministry, has reported that by 2017 cement production capacity will be cut by 61 million t in Hebei Province, reduced by 4.6 million t in Inner Mongolia and lowered to under 5 million t in Tianjin. The steel sector will also feel the impact of these measures, with capacities reduced by 60 million t, 6.7 million t, 22.6 million t in Hebei Province, Shanxi Province and Shandong Province, respectively, in addition to limiting steel production capacity to less than 20 million t in Tianjin. Coke production will be cut by 18 million t in Shanxi Province and reduced to less than 40 million t in Shandong Province, both by 2017.

In July, it was announced that China’s central government would invest 1.7 trillion yuan in attempting to reduce PM2.5 levels. In addition to reducing coal production capacities in the country, clean coal use and alternative energy sources will be encouraged.

Overcapacity in heavy industry will also be addressed, a hot topic for the Chinese cement industry. As part of this, areas around the country’s capital will not be able to authorise the establishment of new plants for sectors such as cement, aluminium and steel.

Edited from various sources by

 

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