The largest cement Group in China-- Conch Group


Updated Fri, 25 Jun 2004 00:00:00 GMT

On the last day of 2002, a cold day, Mr. Wanghongbing,  COO of "century net", visited Mr.guojinbing, present of Conch material Company, vice manager of Conch group.

Conch group is the largest cement group, after ten years' developing, Conch become one of the top ten cement groups in China. How Conch do so prompt development?  Following are what Mr.guo and Mr. Wang talked. Wanghongbing (Wang for short), Guojinbing (Guo for short)

Wang:  Conch develops so greatly, what is the key factor? What is Conch's new plan?

Guo: I am happy that chinacement interview me. Conch's developing is in the second stage; I want to talk about experience along with our planning.
First we enlarge our enterprise:

a. We have a group of good leaders. This is why we can succeed.  They are not induced by other high profit, while dedicated in Conch's development.

b. We have good foundation, as the basic item. We have two advanced plants, which is most advanced in China. (Jidong in North, Ningguo in South)

c. Hold opportunity. China is adjusting cement industry, 80% cement enterprises will be washed out; only enterprise in forefront could succeed.

d. Cement demand increases in developing countries; also no other materials could replace cement.

Second we want to strengthen our enterprise:
We have a good strategy, that is 'T' programming, that also the reason we can succeed, of course we would improve the programming little by little. Conch has already built thirteen clinker bases such as Jiujiang, anqing etc. we have finished our layout, and then we will improve, develop and strengthen our enterprise.

Finally, we want to develop our enterprise scientifically. For the history reason, Chinese cement industry structure is not very reasonable, many low plants are working. Now 70% cement enterprises are producing with vertical kiln. The capital of new dry process is too much for Chinese cement enterprises, as block new dry process developing in China.
We used Japanese plant with 2500 ton capacity, and then we used new dry process with 5000 ton capacity, now we try to use another new dry process with 10000 ton capacity. On one hand, we step up using new dry process; on the other hand, we decrease our investment little by little.

Wang:  through chinacements, many foreigner know Chinese cement industry and come to invest in China, how do you see foreign investors entering into Chinese cement industry?
Guo: it is good for Chinese cement industry that foreign investors enter into. The nation should encourage foreigners investing not restricting.
We are not afraid of foreign investment. Cement industry is different from other industries; it is a raw material industry, a domestic industry. Also we have following advantage:

a. Conch master the most advanced plant in the world, with 10000 ton capacity.

b. Conch's investment is lower than foreigners', is US forty US dollar. But it is difficult for foreigners to low their capital to the number.

c. Conch has successful layout and strategy. With 'T' developing strategy, we are in beneficial position.

d. Conch also has rich capital and financing way.

 Wang: how do Conch deal with people with ability in its developing?
   Guo: enterprise's developing depends on talent people. We are aware of this early. Since 1992, we employ 500-600 college students every year. We are also afraid of severe competition. Several talent people leave Conch, only a few, not result in losing. We would improve our people policy. Except salary, stuff also hold share of Conch. Also we are doing some training, especial technology training.

 Wang: China entered into WTO, as impact Chinese cement industry greatly, what do you think about?
   Guo: it is good for Chinese cement industry. It can help adjusting and improving Chinese cement industry. Cement price in China is low and cement industry is not frightened by exotic strength easily, so there are enough places for Chinese cement to develop.
Chinacements think it is possible for Chinese cement enterprises to export their cement. We believe that Conch has its own strategy, if there is any opportunity, Conch will export their products.