China to reduce cement capacity by 70Mta

The China Building Materials Federation has revealed it plans to reduce cement capacity by 70Mta this year as it intends to reduce air pollution and consolidate the industry to optimise efficiency, according to Yicai Global.

The top 50 cement companies in the country are expected to shut down any production lines that produce less than 2000tpd and upgrade those with outdated technology to achieve this goal. Larger production lines in China typically produce 5000-7000tpd. One key area is the Beijing-Tianjin-Hebei region, where pollution levels are significant.

In addition, the programme also encourages industry consolidation, aiming to bring over 60 per cent of national production to the country’s 10 largest cement producers.