[International Cement Week] M & A in cement industry will still continue
Live in the "Global cement M & A Forum" of "2010 International cement Week"
Changfa Liu, director of China Building Materials Industry Planning Research Institute is presiding over the conference.
Minglin Jiang, the deputy director of State Counselors is making a report named《low-carbon economy and industrial structure adjustment》
Kelan Yuan, division director of Industrial Policy Ministry of MIIT is giving a report named《Industrial policy guidelines and acquisitions of large enterprise groups》
Global International Cement M & A Forum, a conference of“2010 international cement summit” was formally begun in Shanghai.
In 2009, it specified in the No. 38 document issued by the State Council that cement projects not yet started before Sep 30th, 2009 will be suspended and be cleaned-up. Also, if any project does not comply with the principles stated, it wouldn’t be allowed to start up. Provinces (District/City) must set out a three-year eliminate backward production schedule as soon as possible. Control the production, eliminating the backward production and improve industry concentration was put on the agenda.
Changing Gao, senior consultant of China Cement Net is making a report named《The Development Roadmap of world cement in 2050》
Under the circumstances, a big and strong enterprise must be completed by acquisitions of other companies. In fact, M & A in cement industry have already started. Some statistics show that M & A in cement industry involved nearly 80 million tons only in 2009. At the same time, many large enterprise groups are moving to consolidate millions of tons through M&A. China National Materials buyout Qilianshan Cement Co., Ltd. which completed the master northwest market strategy; China Building Materials buyout Liaoyuan Jingang, Jiamusi Hongji to set up northern cement; Wulan cement had been incorporated into China United Cement which completed the first goal of cement productivity during the period controlled by China Building Materials Co., Ltd.; Jidong Cement controlled Qinling Cement and mastered Shanxi cement market; Huaxin cement combined with 4 enterprises in Tibet to set up a company to finish the consolidation of cement market; Jinyu Cement control Tianjin Zhengxing Cement to integrate the markets of Beijing, Tianjin and Tangshan; Huarun Cement buyout Guotou Hainan and Guangdong Spring Bay to consolidate the waterway strategy……
Under the guidance of relevant policies, China's industrial structure adjustment of cement will continue as well as M&A and the M&A step will increasingly speed up. Relevant leaders also show that while promoting the M&A of enterprises must comply with the basic principles that regard enterprise as the mainstay and market competition as the driving force which can promote industrial upgrading, advance effective competition and safeguard social harmony and stability. The government cannot interfere too much to the choices of enterprises. Its main function is to perfect the law and regulations and policy