China’s new cement policy spurs development

China’s new cement policy spurs development
Published: 25 August 2006

The State Council, the highest governing body of China, has recently approved the Specific Plan on Development of Cement Industry and the Policy on Development of Cement Industry, according to the National Development and Reform Commission (NDRC).  The new policy encourages development of new dry-process cement production, and gives priority to construction of new dry-process cement projects with daily production of 4000t and construction of large clinker base and large cement grinding stations close to the market. 
The policy will also encourage trans-regional association of cement enterprises and development of large enterprise groups. 
Newly launched cement production lines are required to have resources guarantee of more than 30 years, and new cement grinding stations to have production scale of at least 600,000tpa.
Areas with limited market capacity and transportation conditions are restricted to launch new dry-process cement production line with daily output of less than 2000t, and are banned to construct cement facilities with vertical kiln and outdated technologies, and transfer throwaway outdated equipment to other enterprises. 

China’s demand for cement is forecast to reach 1.2 billion tons by 2010 and further up to about 1.3 billion tons by 2020.