91mt backward cement capacity will phase out this year


Updated Tue, 01 Jun 2010 00:00:00 GMT

The Ministry of Industry and Information Technology (MIIT) last week announced China would eliminate another 91.55 mln tons of outdated cement capacity by the end of 2010, which was nearly 50 percent higher than the order given by the State Council.

At a meeting held last Thursday, MIIT issued this year's backward capacity elimination tasks for 18 industries to the local governments in which targets for the 6 keynote sectors including iron smelting, steelmaking, cement and electrolytic aluminum.

Harder task for higher target

At a previous videophone conference on emission saving and energy reduction earlier this month, Premier Wen Jiabao asked the cement industry to eliminate at least 5000 thousand tons of outdated capacity in 2010.

However, the central government asked Chinese cement industry to eliminate all backward capacity by the end of 2012. And it's estimated that there are about 300 mln tons of shaft kiln cement, wet kiln cement and other non-NSP cement capacity in China, according to Mr. Chen Yanhai, head of raw material section, MIIT. Of course, 50mt elimination target will make it much harder to eliminate 300mt outdated capacity in three years.

On the other side, in the first 4 years of the 11th 5 year plan period, unit GDP consumed energy fell 14.38%, still below the target of 20% for the 5 year plan. In the first quarter of 2010, the unit GDP consumed energy contrarily grew 3.2% due to fast growth of such sectors as electricity, iron and steel, ferroalloy, construction steel and so on.

"No problem" to make it

Mr Li Yizhong, the minister of industry and information technology, stressed that the primary task at present is for each region to assign the elimination to cities, towns and enterprises as soon as possible as well as publish the backward capacity, equipment, deadline and list of involved enterprise in mainstay media and internet so as to ensure all are washed out before the third quarter.

Now that it's already the last month of Q2, can the ministry achieve its 2010 elimination goal by the end of this year?

When interviewed over telephone by China Cement Net's reporter, Mr. Lv Guixin, chief of building materials section of MIIT confirmed that there should be "no problem" to achieve this year's target.

In fact, China can always achieve its set goals. From January 2006 to December 2009, China eliminated 240mt outdated cement capacity in total, quite close to its 11th Five Year(2006-10) Plan goal: 250mt. Adding this year's 91.55 mt, China will surely surpass its 11th Five Year elimination target at a large margin.