Mr. Xu Defu, vice board chairman of Yatai Company, a company in revival region of East north China


Updated Mon, 16 May 2005 00:00:00 GMT

 cement companies in east north China see opportunities for natinoal revive measures . How Yatai Cement Company, the largest cement maker in east north China do its structure adjustment and how it takes use of the nation's measure to improve itself?

With up questions, CEO and COO of Cementchina visited Mr. Xu Defu, the vice board chairman of Yatai Cement Company.

The central government implements strategy of "revival old industrial base in east north China", what do you think is its significance of the strategy on cement sector?

Mr. Xu: The central government takes measures to revival east north China, it brings opportunity to cement sector, for local government pay more attention to traditional industry and infrastructure construction. Cement price in 2004 is stable in east north China and Guangdong province, although the price is higher in Guangdong than in east north China. Unbalanced resource proportion for rapid development lead to scant electric power and coal, it bring much trouble to cement companies. Cement price go up, as well cost. But if cost goes up for long time while cement price do not change, how cement companies survive and develop? Yatai Cement strengthens internal management, decrease cost and improves efficiency.

adjusting and changing finance, tax and social insurance are mentioned in the privilege policy when the nation decided to revival east north China, many foreign investors focus on the region for value-added tax changing. How does value-added tax changing impact on cement sector?

Mr.Xu: the mentioned value-added tax changing is sensible for cement companies. And by now, Yatai Cement still does not enjoy the said privilege for following two reasons.

First although value-added tax changing low tax for some enterprises, Jiling provincial government did not turn back the money,for too much money needed to pay back, enterprises did not get any returned tax at all.

Eight industries are mentioned (they are equipment manufacture, petrol chemical industry, and metallurgy industry, ship manufacture, car manufacture, and high new technical field, army product manufacture and agriculture) in file for enjoying value-added tax changing privilege, but new dry process technology belong to the up industry, we are not very clear, and hope that relative government department could define clearly, we cement companies support the measure actively.

 What special strength cement companies in east north region have, contrasting with those in Changjiang Delta and Zhujiang Delta? And under the national "revival old industry base in east north region" dealing the relation well with traditional industry is crucial, cement industry is a traditional industry, how Yatai Cement, the largest cement company in east north region, would take this good opportunity to improve itself well?

Mr.Xu: As well known, economy in east north region is not prosperity, as well as the around. East north enterprises have to develop by themselves. Also the cement industry development in east north region can not keep the pace with Guangdong, Changjiang Delta and north region. Furthermore, economy in east north region develop slowly, just like Yatai Cement Co, its capacity is only five million ton, though its product line ever was the largest one in China, compared with Zhejiang province, Yatai’s development speed backward greatly in spite it is the largest cement produce base.

Since the nation takes the policy of revive old industrial base, cement industry in east north sees the opportunity to develop greatly. Yatai will take full use of the vantage to develop itself well. First we will confirm position. With the company’s developing, Yatai will set cement as its key business and Yatai is one of enterprises Jilin provincial government support, Second, taking full use of resource, Yatai own abundant limestone resource, in Jilin there are 3.6 billion which Yatai owns about 25 billion.

 there are many talent people in east north region and short of composite talent people with enough manage and business knowledge, what is Yatai’s human strategy?

Mr. Xu : we have our own human strategy. Three ways we used to save talent people, first Principle, second, treatment and the third is position. We never employ in famous university but employ people from countryside, as long as those students from countryside graduate from technical school, they can work in Yatai.

what do you think national macro control impact on Yatai?

Mr. Xu: I do not think macro control and industrial base reform can bring negative impact on large enterprises but they would bring opportunities. For large enterprises can get more aid from government. Macro control impact little in east north region, for many small cement plants are washed out by market no need government administrative intervene.