Government to consolidate cement industry
By Wan Zhihong (China Daily)Updated: 2007-01-11 09:29
The 10 biggest
cement companies in the world currently control about 80 percent of the
industry, while the 10 biggest Chinese companies only account for 20 to 30
percent of the Chinese market, he said.
"China's cement industry will see
more mergers and acquisitions, and an increasing number of foreign companies
have their eyes on the market," said Hong.
The world's largest cement
manufacturer Lafarge and Southwest China's top cement producer, Shui On
Construction and Materials Ltd (SOCAM), merged their operations in China in
2005.
The joint venture, Lafarge Shui On Cement, which is 55 percent
owned by Lafarge and 45 percent by SOCAM, established a new cement leader in
Southwest China.
Meanwhile the nation's largest cement maker Anhui Conch
has agreed with Morgan Stanley Asia Investment Ltd, a subsidiary of US
investment bank Morgan Stanley and the World Bank Group's private-sector arm, the International Finance Corporation, to buy stakes in the
firm.
"Facing these mergers and acquisitions, domestic companies need to
increase their capacity in order to compete with foreign enterprises," said
Hong.
Some of China's big cement makers have already started expanding.
China's largest building materials manufacturer, China National Building
Material Group Corp, last year raised $150 million from its initial public offering on the Hong
Kong stock exchange.
Attempting to adjust the cement industry's
structure, China will continue macroeconomic control measures focused on cement
manufacturing, said the NDRC earlier.
The nation
will accelerate the elimination of small-capacity cement production lines and
outdated technology.
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