Advice on not investing blindly in cement industry


Updated Fri, 02 Jul 2004 00:00:00 GMT

Cement is an important building material, in recent years, with  developing of building industry, cement demand increases fast. In China there are some problems: a. 75 percent of cement factories are vertical kiln producing, the technology is far behind advanced technology, b. in some region, there are so many new projects, competition in those market is so drastic, c. using vertical kiln, people can only make use of only 40 percent of limestone, waste resource also pollute the environment. Then the government advises:

First. Perfect policy
With developing of cement industry, revise policy,confirm product and technology, and decide which should be washed out or should be sustained. In region abundant in resource, set up new dry process plants with 4000 tons day capacity, develop new technology such as dry process. According the fact of cement industry developing, step up to washing out the laggard plants, and stop to build or enlarge such as mechanical shaft kiln projects, dry process plain kiln projects, Lepol kiln projects, wet process kiln projects etc. local government should guide investing direction.

Second. Scientific plan and layout  Within cement industry developing, people should do as principle ‘ control total production, adjust structure, improve quality, and protect environment’, take account of local resource, energy sources and market demand roundly, do the plan and layout carefully.Local government should take relevant measure to stop repeating building of low-level projects.

Third. Strict market standard 
Local resources administration should control the land use for building and enlarging cement projects. Developments administration should guide to use concrete with high capacity, confine the useage of vertical kiln cement, and stop using the ineligible cement, insure the project quality.Quality section should control the produce licenses strictly, to the enterprises, which violate industry policy building new vertical kiln, should not award them license, to those companies which have no sanction, should ban them legally. To the cement projects that are confined and washed out,  financing department should not provide loan, certificate administration should not agee with the financing application. Finance and tax section should improve tax policy.

Forth. Consolidate the supervising on environment 
To cement projects, which will be built or enlarged and modified, environmental protection administration should evaluate the environment influence strictly, do design, construct and implement at the same time, also control the total pollution strictly. To cement enterprises, should control the license for pollutant releasing, do not permit the enterprises releasing if no sanction. To enterprises, which exceed local or nation’s pollutant-releasing standard, local government should do some managing within limited time, if still could meet the standard, the enterprises should stop to adjust orbe banned. Local government should revise ‘ pollutant-releasing standard for cement industry’, change the current standard that measure by factory beginning time, unify the standard about pollutant-releasing of enterprises.

 Fifth. Enhance the resources management 
 Enhancing limestone mineral resources managing. Under the premise of protecting natural environment, insure the reasonable layout and make use of mineral resources rightly. Establish perfect policy and measure on such as environment protecting, land repeated using, ecosystem recovering, and clear producing, saving resource etc.