China plans to eliminate 300Mt of obsolete cement capacity over the next three years as part of its effort to address oversupply, according to a draft document that will be submitted for regulatory approval, the China Securities Journal reported.
At the end of last year, China’s obsolete capacity was 500Mt, or 27 per cent of the total output of the country, according to the Ministry of Industry and Information Technology.
China will strictly control its total cement capacity, while moderately boosting output from new dry-process lines, which is expected to account for 90 per cent of the total by 2015, according to the draft.
In other efforts to consolidate the industry, by 2015 the combined output of the top 10 producers in China will account for more than 35 per cent of the country’s total, while their output of clinker will account for 50 per cent of the total.
Source: China Knowledge