2013 China Cement Development Forum held in Changsha


Updated Wed, 07 Aug 2013 00:00:00 GMT

Changsha: During the period of Eleventh Five-Year Plan in China, cement capacity layout  has been basically completed, and the proportion of new dry process has far surpassed the original target, while overcapacity problems follow at the same time; After entering the period of Twelfth Five-Year Plan, the issue of overcapacity has become much more highlighted, therefore, cement enterprises started to engage in industries like concrete, sand and gravels, and  extend their industry chain both upward and downward.

On July 25th, “2013 China Cement Development Forum”, which focused on the theme of “cement industry extension”, was held in Jinli International Hotel in Changsha, Hunan. The forum is sponsored by China Cement Net and Zoomlion Limited Company. The meeting focused on cement enterprises’ extension of industry chain,  current environment and development prospects for concrete, sand, graves,aggregates and cement products industries. Enterprises which have successful experiences in industry extension, corporate management of cement kilns were invited to share their experience.

Conference site

More than 200 experts, scholars and entrepreneurs attended the conference, including Zhou Qinghao, Director of General Management Department, China Building Materials Federation; Han Jixian, Vice-Chairman of China Sand Association; Shaojun, CEO of China Cement Net; Feng Gang, Secretary-General of Hunan Cement Association; Chen Peiliang, Vice-President of Zoomlion Limited Company and  Deputy Vice-President of Zoomlion Concrete Machinery Company; Li Zhanjun, Vice-President of Jidong Development Group Limited Liability Company and President of Sand, Gravel and Aggregates Department; Xie Jiazhen, CEO of Hunan Southern Cement Group Co. Ltd.; He Guangyuan, Director of Conch Cement in Hunan; Jing Xianyu, Vice-President of Tianrui Cement Co. Ltd.; Gu Zhiwei, Vice-General-Manager of Tianrui Cement Co. Ltd.; Xu Daye, CEO assistant of Xianjiang Tianshan Cement Incorporated Company; Wang Guifu, General-Manager of Tangshan Jidong Concrete Co., Ltd.; Zhang Zhaohua, Vice-Inspector of Strategic Development Department of Huarun Cement Investment Co., Ltd.

Chen Peiliang, Vice-President of Zoomlion, is making an opening speech 

The conference was held by Wang Jianrong, Manager of Conference Exhibition Department of China Cement Net. On behalf of Zoomlion Cement, Chen Peiliang, Vice-President of Zoomlion gave the opening speech in the meeting. Chen indicated in his speech that cement industry would accelerate its transformation and upgrading speed as the cement market matures, and the extension of industry chain has obviously become inevitable if cement enterprises expect development. Concrete has become the second largest industry following the cement industry. And world cement giants like Cemex and Holcim all have concrete businesses. While with continuous growth in the whole industry, domestic cement enterprises, especially those big ones, has been entering into concrete industry faster.

As a professional concrete machinery manufacturer and a world-leading solution provider for commercial concrete plant, Zoomlion has been paying attention to cement enterprises’ entering into concrete industry. By technological innovations, Zoomlion has been searching ways to solve problems of dust, noises, sewage and pollutions in traditional mixing plant. In the future, Zoomlion is going to strengthen corporation with cement enterprises and provide more and better equipments, technologies and services for the development of concrete industry.

Shao Jun, CEO of China Cement Net, is addressing the meeting

Shao Jun, CEO of China Cement Net, addressed the conference. Shao said in his speech that the past ten years was a golden period for cement industry to flourish. And now cement industry has stepped into a new period when extension of cement industry has become a new focus. Whether starting industry extension, managing wastes coordinately, or transforming into environmental protection industry shall all be sound steps for cement enterprises to take.

Shao expected this forum could bring heated discussion among the industry, and help enterprises optimize resource arrangement and industry layout more effectively, as well as promoting Chinese cement industry to develop healthily and continuously. Finally, Shao extended his thanks to Zoomlion for its contribution to this forum, and wished a complete success of this cement development forum!

Zhang Weihua, Chief Engineer of Hunnan South Group, is giving a welcome speech.

Zhang Weihua, Chief Engineer of Hunnan Southern Group, addressed a welcome speech. Zhang indicated in his speech that under the environment of cement overcapacity, Hunan Southern Cement is increasing its capability to deal with risks by means like extending industry chain and improving its own internal strength. Currently, annual concrete sales in Hunan Southern Group has reached approximately 30million cubic meter, which accounts for 50% to 60% of concrete market share in Hunan.

However, although the profit-making ability of Hunan Southern Group has been greatly improved because of the concrete sector, there are still many problems perplexing the company, such as the chaotic market, and too much accounts receivable. Zhang expected to increase communication with its peers within the industry, and optimize resource allocation and industry layout further. He also wished cement enterprises to make a good move in the extension of industry chain!

Zhou Qinghao, Director of General Managing Department, China Building Materials Federation, is making a report.

Zhou Qinghao, Director of General Managing Department, China Building Materials Federation, made a speech on the forum. In his speech, Zhou gave a theme report named Research and Development Plan of Second-generation New Dry Process Technical Equipment. In the report, Zhou said that Chinese cement industry has moved abroad and contracted many cement programs, while this is not because of China’s core technology in cement industry, but because of China’s low labor cost, short working period and low contracting price.

From the perspective of China’s current development in cement industry, Zhou Qinghao said that there were several tasks to finish if the country expects to see upgrading in cement industry, including extending and upgrading cement kilns’ four functions, optimization and upgrading the efficiency of the six energy conservation steps, breakthrough in some bottle-neck problems of dust nitrogen oxide emission, and linking up the whole intelligent system.

Han Jixian, Vice-President and Secretary-General of China Sand Association, is giving an analysis report on the present situation and development trend of sand industry. 

Sand and gravel industry is one of cement industry’s main extension targets. Han Jixian, Vice-President and Secretary-General of China Sand Association, gave a report on the theme of Chinese sand and gravel development. Han said that sand and gravels are one of the most important raw materials in China’s infrastructure projects. Annual sand and gravel output in China is about 10billion t, if the average price is 30yuan/t, then the total value of sand and gravel industry may reach 300billion yuan, which will lead to a rise of 200billion yuan in industries like transportation, thus the total value amounts to 500billion yuan. Gravels are the products that consume the largest amount of solid resources, and its output has been increasing year by year. As resources like natural sand and river sand run out, as well as government’s greater control on sands, machine-processed sands will inevitably replace natural sands in the future.

Despite of the sound prospect in sand and gravel industry, there are still many problems within the industry, such as low industrialization degree and basic industry format, low industry concentration, uneven quality of enterprises and products, lack of environmental protection concept, and bad managing ability. All the above existing problems now limit the development of the industry, thus the development level remains low. Currently, accelerating the development of machine-processed gravel industry has become the main direction for industrial and structural transformation and upgrading. The gravel industry is adjusting, merging, reorganizing, transforming and upgrading the industrial structure, as well as saving energy and reducing emissions through the research and development, production and application of machine-processed sand and gravels. 

Li Zhanjun, Vice-President of Jidong Development Group Limited Liability Company and General-Manager of Sand, Gravel and Aggregates Department

Big cement enterprises lead not only in sales volumes of cement, but also in sales volumes of concrete and aggregates. Cement, concrete and aggregates have already become three main industries. Li Zhanjun, Vice-President of Jidong Development Group Limited Liability Company and General-Manager of Sand, Gravel and Aggregates Department gave a report named Research on Cement Enterprises’ Concrete and Aggregates Development, in which on the basis of three main industries’ characteristics as well as Jidong several year’s experience, Li analyzes the advantages, disadvantages, and some matters need noticing for cement enterprises in developing concrete and aggregates.

Li Zhanjun answered the question of Conch Group’s not engaging in concrete business. He said that it’s a must for cement enterprises to develop concrete business, while they should proceed gradually and step-by-step. 

Li also gave some advice to cement enterprises on developing concrete and aggregate businesses. He said that cement enterprises should adopt different developing strategies according to different operating characteristics of concrete and aggregates, and they should also attach importance to technology, management and team-building, as well as adopting suitable developing modes.

Li Shunshan, president of Nanchang Mining Machinery Co., Ltd., is analyzing the decision and managing problems for cement enterprises when entering sand and aggregates businesses.

Li Shunshan, president of Nanchang Mining Machinery Co., Ltd. made an analysis on some common problems in policy-making and company operation from the perspective of cement enterprises’ main goals and advantages in entering sand, gravel and aggregates industries. He pointed out that cement enterprises can find new ways to improve their profits, maximize the resource utilization rate, and extend the industry chain. Besides, Li also said that resources, technology, funds and management are all cement enterprises’ advantages.

Developing sand, gravels and aggregates is a way to extend the industry chain, but what can be called the best production process? Li Shunshan gave some common procedures of processing machine-processed sand and gravel: Jaw crusher + impact crusher;jaw crusher + hammer crusher;jaw crusher + cone crusher; impact crusher + impact crusher. And Li also pointed out that lithology and the market decide what kind of procedure to choose. As to questions like how to choose facility manufacturers, whether to use domestic facility or export them from abroad, and what is the standard of measurement when choosing facilities, Li told by his own experience that we may choose by comparing the price overall.

Han Lei, Head of Sales Department in Luoyang Dahua Heavy Machinery

As is known to all, a large number of barren rocks will be produced after mines’ being exploited and stripped. These rocks occupy many farmlands, thus enterprises have to pay much money on land expenditure. What’s more, people’s safety cannot be ensured if these barren rocks cannot be well dealt with. Han Lei, Head of Sales Department in Luoyang Dahua Heavy Machinery gave a report on the theme of A whole set of technology on processing man-made sand, gravel and aggregates through cement mine. 

Barren rocks, which are produced after mines’ being stripped, if being processed into sand and gravels, can solve emission problems of mine barren rocks, as well as providing cheap materials for sand and gravel industry. Han Lei introduced the integrated utilization technology and facilities of mine barren rocks in Dahua Heavy Machinery for the participating representatives.

Li Yuan, General-Manager Assistant of Beijing Yueji Industrial Co., Ltd.

Conveyors are necessary in mines. Li Yuan, General-Manager Assistant of Beijing Yueji Industrial Co., Ltd made a report on the theme of Adopting Various Measures to Improve the Safety and Efficiency of Protective Conveyors. The reliability, expected profit, maintenance condition and using experience of belt conveyers are the most common problems that customers worry about. Li Yuan gave detailed explanations on the above mentioned problems and introduced some related experience and ways from Yueji Industy.

Li introduced Yueji’s know-how in ensuring the safety and efficiency of its belt conveyor, including advanced designing methods, strict selection of parts and components, detailed plan on position set, training programs for new workers, project follow-up, and technology on Internet.

Gao Yuzong, General-Manager of Beijing Si Fanglian New Technology Development Co., Ltd., is introducing the basic situation of garbage disposal in China. 

Coordinate disposal of garbage through cement kilns system is a hotspot in the industry. Gao Yuzong, General-Manager of Beijing Si Fanglian New Technology Development Co., Ltd. made a report on the theme of Investigation in Garbage Burning Technology through SFL Cement System. Gao introduced the basic condition on garbage and common ways to dispose of garbage. He also compared different ways of garbage disposal.

Compared to some other ways to dispose of garbage, Gao introduced both the advantages and disadvantages of cement kilns’ coordinate disposal of garbage. Energy-saving, environmental-friendly, and economic are its advantages, however, the technology is still under development as residents’ garbage cannot be classified radically. 

Feng Chenhui, Strategic Development Specialist in cement and concrete industry, is making a report on the competition among modern enterprises.

Feng Chenhui, Strategic Development Specialist in cement and concrete industry, thought that people needed not worry about the overcapacity problem in China cement industry. Feng thinks there are three main reasons for cement overcapacity, including government’s GDP orientation, enterprises’ non-rational investment, and failure in administrative and approval system. Feng also evaluated some ways to solve the problem of overcapacity.  

Main methods to solve the overcapacity problem consists of eliminating the capacity produced by out-of-date technology, government’s new policies of capacity control, acquisitions, integration and industry coordination, ecological civilization construction and environmental protection, and market competition. Personally, Feng thought that only through market competition could uncompetitive enterprises be eliminated radically, thus would the industry become rational again. Survival of the fittest is necessary for the market economy.

According to Feng, the essence of the competition among enterprises is not the competition among products or enterprises, but among industry chains. And the competition of industry chains is a problem that cannot be avoided. There are several ways to make the industry chain competitive, including keeping the completeness, coordination, and scale effect of the chain, as well as managing all the sectors of the chain finely.  

Yao Pengxing, Sales Director of Zhejiang Zhongjian Building Materials Science and Technology Co., Ltd., is talking about some common problems in aggregates areas.

As for the common problems in domestic aggregates production lines, Yao Pengxing, Sales Director of Zhejiang Zhongjian Building Materials Science and Technology Co., Ltd., made detailed interpretation and gave some solutions correspondingly. Yao introduced the characteristics of limestone and granite aggregates production lines from Zhongjian Building Materials, exhibited part of the big projects that it contracted to build and some advantages of its production lines like environmental protection, investment and capacity.

Li shiqiang, Deputy General-Manager of Jishan Machinery

Crushers are the principal products in the process of sand and aggregates production. Li shiqiang, Deputy General-Manager of Jishan Machinery, showed the hammer impact crusher, which has high output capacity and crushing ratio. With the crusher, the sand can be formed once and the shape of the sand is standard, and stone powder produced is quite low. The capacity of the crusher amounts to 2500t/h, and its energy consumption is low. The crusher is easy to operate, and can be controlled automatically.

Wang Yannan, Manager of China Cement Research Institute

Half of 2013 has passed, and at this mid-year point, Wang Yannan, Manager of China Cement Research Institute, gave a report on Analysis and Outlook for 2013 Cement and Concrete Industry, in which Wang brief on the quantity, price and profit of cement industry, analyzed the situation of cement industry in the first half of 2013, forecasted the second half and also summarize the situation of concrete market.

The interaction forum 

After the end of the conference, the forum came to the best “interaction” part, whose theme was “integrating resources and markets” and which summarized the whole conference. The interaction forum was held by Shao Jun, CEO of China Cement Net. Many experts within the industry, including Han Jixian, Vice-chairman of China Sand and Gravel Association, Yin Juming, Chief Engineer of Shandong Shanshui Group Building Materials Company, You Jianqiang, Zoomlion Group, Li Shunshan, CEO of Nanchang Ore Machine, Han Lei, Chief Engineer of Luoyang Dahua, Feng Chenhui, Strategic Development Specialist in concrete and cement industry, were invited to the forum to interact with participating representatives.

Delegates is giving their opinions actively (In the picture is Tang Guangrong, a cement ore expert)

Tang Guangrong, Ex-General-Secretary of Ore Professional Committee, China Cement Association and cement ore expert, said that we should reform radically in the development of sand, gravel and aggregates in China. We shall not exploit or build the mine blindly, instead, we should survey the mine thoroughly and make sure that after clear and professional examination, the mine can meet the aggregate demands.

Han Jixian, Vice-President of China Sand Association highly agreed with the above point. Han thought that investment in aggregates equals to investment in mine projects, for most of the investment was allocated in mine. And if facilities must reach to the top level, and 50 million is all enough.

Lai Weipeng, General-Manager of the concrete company, Hongshi Group Holdings, said that Hongshi had just stepped into concrete area, after attending this forum, he found that industry chains have been extended, and enterprises became larger in size and more competitive.

What’s more, Yin Juming, Chief Engineer of Shandong Shanshui Building Materials Co., Ltd, said that cement enterprises’ extending the industry chain to develop concrete businesses, and their transformation from producers to consumers will promote cement enterprises to research and develop the products from consumers’ view point, thus help the cement industry to progress better.