Northwest China to expand capacity

Northwest China to expand capacity
Published: 01 December 2008

Responding to China’s CNY 4 trillion economic stimulus plan, listed cement producers in northwestern China are expanding their production capacity.

Qilianshan Cement Group Co., Ltd, a Gansu- based cement producer, announced on Thursday that it planned to build a 3,000tpd line for the wholly owned subsidiary Gangu Qilianshan Cement Co., Ltd. Of the total planned investment CNY 454.68m, 35 per cent will be raised by the listed company itself.

The new NSP cement production line is expected to bring about CNY 315m sales incomes every year, equivalent to one quarter of Qilianshan Cement’s revenue in 2007, and to contribute CNY 95.82m annual profit.

With the investment, the Shanghai-listed cement producer expects to take a larger share in Tianshui and expand its presence into Dingxi and Longnan cities.

Xinjiang Tianshan Cement Co., Ltd, the largest cement producer in northwestern China, announced this week that it would construct two 2,000tpd carbide slag cement clinker production lines in Midong Tianshan, which can produce 1.5Mt of cement, and build a 2000tpd dry-process line at Buerjin branch with an annual production capacity of 600,000t.

In the meantime, Tianshan Cement’s Tianshan Shenzhou concrete production unit will build new concrete production lines and its Turpan cement clinker production unit will make technical modification of low temperature waste heat power generation.

Upon the completion of the projects, Tianshan Cement’s annual production capacity of cement clinker, cement and concrete will increase 600,000t, 1.5Mt and 800,000m3 in 2010, respectively.

These moves indicate that Tianshan Cement now focuses on the market of Xinjiang Autonomous Region, said analysts.

China’s CNY 4 trillion economic stimulus plan, which takes 2010 as a deadline, is a major driver to the two cement producers’ expansion, said analysts. Such investment plan can prolong the prosperity cycle of cement industry, and it is expected to spur domestic demands for more than 500 million tons of cement.