Anhui Conch expects to increase market share and lift profits as a result of Beijing’s plans to consolidate the country’s fragmented industry.
In the next 3-5 years, the central government plans to pave the way for investment in more efficient plants by closing obsolete capacity currently producing 500Mt of cement, amounting to 28 per cent of last year’s 1.8bnt output.
"This will give big cement companies like ours room for large expansion. It will be very beneficial for the growth of big cement companies," said Zhang Mingjing, the vice-general manager at Conch.
This year, the National Development and Reform Commission (NDRC) plans to shut down 50Mt of obsolete cement production capacity.