In recent years, the economic downturn of the downstream industry, especially the real estate industry, has had a greater impact on the concrete industry. According to the DataBM. Com of Digital Building Materials Network, in 2022, the average price, overall business income and profit of the national commodity concrete market showed a significant downward trend, and 3700 concrete enterprises in the industry lost money throughout the year, which accounted for 22.68% of the industry. The increase of losses has led many concrete enterprises to go bankrupt or face the risk of bankruptcy.
According to the statistics of the DataBM. Com of Digital Building Materials Network, 63 concrete enterprises have applied for bankruptcy or entered bankruptcy proceedings since this year.
It is understood that the downward trend of the real estate industry inevitably has an impact on the entire industrial chain. In addition to the concrete industry, the cement industry is also facing problems such as imbalance between supply and demand and disorderly competition. In this case, many enterprises have to face the grim reality, and some enterprises even have to go bankrupt. Among them, there are both clinker enterprises and grinding stations. According to incomplete statistics, more than 40 cement plants have declared bankruptcy or entered bankruptcy proceedings and recruited bankruptcy investors this year.
For example, recently, China Cement Network learned from the Intermediate People's Court of Wuhai City, Inner Mongolia Autonomous Region that on July 4, 2023, Inner Mongolia Baotou Steel Xichuang Group Co., Ltd. applied to the court for bankruptcy liquidation of Wuhai Huayuan Cement Co., Ltd. on the grounds that the respondent Wuhai Huayuan Cement Co., Ltd. had been suffering serious losses and was unable to repay its debts due. Wuhai Huayuan Cement Company has a 4000t/d production line, which was put into operation in August 2010. In March this year, the list of cement clinker flat glass production lines issued by the Office of Industry and Information Technology of Inner Mongolia Autonomous Region showed that the production line had been shut down. The bankruptcy portfolio assets
of Baiyin Xinhua Cement Co., Ltd. and Baiyin Huafeng Industry and Trade Co., Ltd. will be auctioned soon, with a starting price of 118 million yuan, including an annual output of 1 million tons of cement grinding stations.
Lanzhou Licorice Environmental Protection Building Materials Co., Ltd. recruited bankruptcy reorganization investors. There are two cement production lines in the factory area, a 4500t/d new dry cement production line and supporting machinery and equipment, which were completed and put into operation in March 2019. The 4500t/d new dry process cement production line is in a state of shutdown. A 2000t/d clinker production line was completed and put into operation in May 2011, and is now in a state of shutdown. After technical transformation, it will have the production conditions of 2500t/d clinker.
In addition, according to the statistics of China Sandstone Association, 11 sand and gravel enterprises have declared bankruptcy from January to September this year. Influenced
by many factors such as the downturn of real estate, the related industries are undergoing a round of shuffling, and the enterprises with weak competitiveness will inevitably be eliminated. There is a view that the downward trend of demand in the future can not be changed. In order to cope with this challenge, enterprises need to be prepared and take positive measures, such as upgrading and transformation, extending the industrial chain, to maintain competitiveness and gain a firm foothold in the market shuffle.