China’s urbanisation, new rural development and infrastructure investment boost the demand for cement in 2008-2010, says Anhui Conch Cement executive director Guo Jingbin.
Urbanisation demands additional 140Mt of cement and new rural development adds another 240Mta between 2008 and 2010. Development of infrastructure projects like railway, road and airport also push up the demand for cement. China is restructuring the cement industry and Guo believes a gross capacity of 70Mt will be eliminated or merged in 2008.
The 10 strongest cement companies should occupy 30% of the country’s production in 2010, up from 23% in 2007. A decrease in the number of cement plants will be an advantage for companies to raise selling prices.