Gain or Loss: Acquisition of Xuzhou Conch Cement----Visiting Conch Group Deputy General Managers Yu Biao and Guo Jingbin (Part III)


Updated Tue, 21 Nov 2006 00:00:00 GMT

Favorable Market Prospect
Mr. Shao Jun: as the first year to eleventh five-year plan, many projects are oncoming, which brings new chances for cement enterprises. So, how do you think about the performance of cement market in the country this year, and what’s Conch’s strategy when it enters into a new circumstance?
Mr. Guo Jingbin: in the past two years, China cement industry has experienced a bumpy road. Let us look at the aspect of demand first. After the macro control of 2004, China cement demand in 2004 and 2005 still increased 10%. In another word, though it was a tough period because of macro control, there was no fluctuation in the cement demand. But why there is a decrease in the benefit of cement industry? I think it is the result of mass cement discharge. But, in my opinion, the cement industry will recover in the next three years, and I also believe the demand in the whole market will grow, and keep at the level of 10%.
Mr. Yu Biao: when we enter into a new market, firstly, we will keep peace with the large enterprises which also have operation in that region, to avoid bad competition, and then, follow the market rules, including local price adjustment, optimization of production cost, and elimination of lagging productivity.
Export Strategy
Mr. Shao Jun: in 2005, Conch exported nearly 9 million tons of cement. In 2006, Conch exports much more vigorously. It is said that Conch exported 1 million tons in one month. Could you introduce Conch’s strategy of export?
Mr. Yu Biao: this year, Conch’s export still increases. We have 3 concerns on cement export. The first one is in the world cement industry’s development, we should take an important status by exporting, or we will lose the voice in the world cement industry. The second one is foreign holiday economy needs much cement. Export could provide more chances for Conch to expand cement sale. Third is the requirement of export cement is very high and strict, which urges us to advance the quality of our products and the efficiency of our production lines.
Design of 11th Five-Year
Mr. Shao Jun: during the 11th five-year, what’s Conch’s target and design?
Mr. Yu Biao: during the 11th five-year, to fetch more chance for Conch, we should upgrade our technology and management firstly. Then, secondly, we should apply waste heat generation vigorously. We should try to finish waste heat generation programs on all of Conch’s new dry process production lines during the 11th five-year, and reduce the general energy consumption by 20%.
Talents Cultivation
Mr. Shao Jun: during the development, Conch has cultivated many talents for the cement industry. Could you talk something about Conch’s strategy of talents?
Mr. Yu Biao: our strategy is very simple. There are two aspects. One is to enlarge the team of talents. Since the 90’s, Conch has recruited 500-600 graduates annually. Second is large investment to encourage personal development. Now, what the large enterprises and groups need to make progress is not only the employee’s personal skill but also the team work which is much more important.