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The changing Chinese market for building materials plants

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World Cement,

Chinese building materials plant suppliers will step up their challenge to western manufacturing companies both within China and globally, according to a presentation by Björn Conrad of Sinolytics. Speaking at the VDMA Building Materials Plant Day last month, Conrad argued that a combination of state support and higher technology standards will see Chinese companies bridge the gap with their western counterparts.

From 2021 – with the start of a new five-year plant – industrial policy in China will favour Chinese suppliers, pushing foreign manufacturers out of the market, Conrad said. Although opportunities will remain in specialisation and environmental technologies, western suppliers will need to prepare to this change.

In addition, the technological gas between Chinese and western manufacturers is narrowing, allowing Chinese companies to compete with large international engineering companies on the global stage. Several state champions, such as merged Sinoma/LNBM and Pengfei, are leading the charge.

There will continue to be opportunities, however, particularly within the area of environmental protection, which are not yet the focus of political interest. Conrad also noted that China cannot currently cover the new demand for high-technology building plants locally, which will see demand for western technology continue at least in the short to medium term.

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Cement news 2018