Conch cuts capex, stimulus to aid industry, China
Anhui Conch Cement Co Ltd expects gross profit per tonne to rise this year, an executive said on Tuesday.
Anhui Conch will cut planned capital spending in 2009 by 30 per cent to CNY7bn (US$1.03bn) since some projects are behind schedule, executive director Guo Jingbin told Reuters in a telephone interview.
It spent CNY5bn in capital investment expenditure last year, or 29 per cent below its original plan of CNY7bn.
"The progress of some projects is slower than expected due to external reasons, such as government approvals," Guo said.
The company believes China’s 4 trillion yuan stimulus package aimed at boosting domestic demand will benefit the industry as a whole, Guo said.
"The package will have a great impact on the cement industry since cement is mainly for sale in the domestic market," Guo said. "It is also expected China’s overall fixed asset investment will rise 15 to 20 per cent in 2009, and that will translate into an increase of 5-6 per cent of cement demand." Published under Cement News
