China's cement industry faces vast overcapacity say NDRC official


Updated Fri, 02 Nov 2012 00:00:00 GMT

China's cement industry is facing massive overcapacity despite a recovery in output in September 2012, said Liu Ming, an official of the National Development and Reform Commission (NDRC).

By the end of 2011, a total of 1513 cement works were operating in the country, with a total cement output of 2.3Bt. According to Liu, 210 new cement works are either under construction or to be opened. Once they are all in operation, the nationwide cement output is expected to reach 2.8Bt/yr.

The official said that China would strictly control new production capacities, raise the thresholds for access to the industry, promote mergers and acquisitions in the industry, and eliminate outdated production capacities.

In the first nine months, China's total cement output reached 1.591Bt, an increase of 6.7% year on year. In September 2012 alone, the monthly output hit a record high of 210Mt, reflecting a recovery in the industry.