China Shuangji Cement Ltd optimistic about Chinese cement industry

China’s Economic Information Daily, a key publication sponsored by the Xinhua News Agency, revealed that the Chinese government’s new cement industry development policy has been finalised, which is predicted to encourage merging between larger enterprises in a bid to avoid backward production. Steps have already been taken in this direction, with the elimination of inefficient plants and the phasing out of smaller producers. New methods of dry production are expected to be encouraged and by 2015, the top 10 producers are expected to account for 35% of China's projected output of 2.04 billion t, compared to 22.6% of the country's 1.63 billion t output in 2009.

Mr Wenji Song, Chairman and President of China Shuangji Cement Ltd commented, "we expect the PRC Government's policy to be a boon to the cement industry in China and to increase demand for our cement as smaller, more inefficient producers continue to shut down and government and local customers require more cement for new infrastructure, housing and other projects. This is being supported by the government's US$ 586 billion economic stimulus package, which has increased projects involving steel, aluminum, and cement, as well as measures to boost rural consumption by subsidising procurement of building materials. We are already seeing increased interest from local contractors to buy our cement and have received a 10 year US$ 3.7 million 10% interest loan (not convertible into stock and without warrants) that will allow us to complete our new modern cement facility in Zhaoyuan City, which is expected to increase our production capacity by 1 million tpa to an estimated 2.5 million tpa. This will solidify our position as a major cement player in fast growing Shandong and Hainan Provinces."

Read the article online at: https://www.worldcement.com/asia-pacific-rim/05082010/china_shuangji_cement_ltd_optimistic_about_chinese_cement_industry/