China’s cement industry reports 30.8% rise

China’s cement industry reports 30.8% rise
02 April 2009

The cement industry in China saw a 30.8% YoY surge in gross profits last year, which were RMB26.14bn, whereas the industry saw growth of 34.2% in 2007, according to recent statistics by China Cement Association.

In 2008, China produced 1.39bnt of cement, up 5.2% from the previous year, but less than expected, said the association. The cement sector received a total investment of RMB 105.15bn last year, 60.76% more than in the previous year despite the global economic downturn.

However, Chinese cement exports in 2008 fell 12.91% from a year earlier to 13.23Mt, and clinker exports declined 28.11% to 12.8Mt, due to the global slump in the property market and the appreciation of Chinese currency.

China will encourage mergers and acquisitions in the Chinese cement industry to optimise its industrial structure, said Ou Xinqian, vice-minister of industry and information technology.

Industry insiders are optimistic about the nation’s cement industry in 2009, since China will maintain a comparatively high GDP growth, and since the country will invest a lot in infrastructure construction to stimulate its economy.

Source: China Knowledge
Published under Cement News