Mergers, acquisitions to accelerate in cement sector

Mergers, acquisitions to accelerate in cement sector
15 November 2007

China is likely to see the number of its cement manufacturers decline to 1,000-odd in 2010 from the current 5,000-plus, said Lei Qianzhi, head of China Cement Association.  
In the coming few years, mergers and acquisitions will speed up in the industry, Lei noted at a press conference held Wednesday for promulgation of state criteria on energy-efficiency designs for cement production. The criteria, involving buildings, power systems and mining related to cement production, will take effect on May 1, 2008.  
Lei forecast this year China’s cement production would reach 1.4 billion tons, or 48 percent of the world’s total. 
Lei said in the 2006-2010 period, the cement industry should focus on technical upgrading and enhancing concentration of manufacturing through accelerated mergers and acquisitions.  
In the upgrading and takeovers, new-type dry process should account for 50 percent to 60 percent of China’s total cement output, according to Lei. The proportion averaged 50 percent at present, Lei added.  
By 2010, the top 10 cement manufacturers will make up 400 million tons, or 30 percent, of annual output nationwide.  
According to the 2006-2010 development plan for the cement industry, the sector should have its energy consumption for every 10,000 yuan of GDP reduce by 25 percent from the 2005 level.  
Published under Cement News