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Li Chen, deputy secretary-general of the China Cement Association: Accelerate mergers and acquisitions and increase regional industrial concentration

On August 9, Li Chen, deputy secretary-general of the China Cement Association, told the China Securities News reporter that structural adjustment and consolidation of production capacity are not only the main work of the cement industry in the "13th Five-Year Plan" period, but also an important means for the industry to deepen the supply-side structural reform during the "14th Five-Year Plan" period.

Li Chen said that in terms of capacity layout optimization, during the "13th Five-Year Plan" period, large cement enterprise groups have increased industrial concentration through joint restructuring, integration of property rights or management rights, and the cement clinker design capacity of China's top 50 large enterprise groups accounted for 76% of the total national production capacity. Among them, the cement clinker production capacity of the top 10 large enterprise groups accounts for 57% of the total production capacity of the country, and the cement clinker production capacity of the top 5 large enterprise groups accounts for 46% of the total production capacity of the country. Basically reached the goal of "the production concentration of the top 10 enterprises in cement clinker and flat glass production reached about 60%".

Li Chen further said that in the past five years, the cement industry has gradually accelerated mergers and acquisitions under the dual impetus of supply-side structural reform and state-owned enterprise reform, and after the completion of the strong joint restructuring between large enterprises nationwide, the regional industrial concentration has begun to be laid out.

"It is expected that the regional-based mergers and acquisitions and the integration of inter-industry within large groups may set off a new climax, which will also meet the local requirements for carbon peaking." Li Chen said.

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